A trade certificate acquired from the registering authority permits a dealer to get an exemption from registering the vehicle owned by him/her although the dealer cannot sell a vehicle to another buyer without the temporary or permanent registration of the vehicle. The registering authority issues trade certificate and it is valid only for 12 months from the date when it was issued.
Limitation on the Usage of Trade Certificate
The trade registration mark and number can only be used by the person who has been issued the trade certificate. However, only in some exceptional circumstances, it can be used by another individual. These circumstances include:
When a person, who is driving the vehicle, is working under the authority of the person who was issued a trade certificate. A bonafide document must verify this.
If a person who is driving the vehicle is doing so on behalf of the owner of a trade certificate.
If the person driving the vehicle using it as a prospective buyer who is willing to purchase the vehicle from the individual who has been issued the trade certificate.
Situations in which a vehicle with a trade certificate can be used:
For testing the vehicle.
For construction/repair of the vehicle.
For returning from a place where the sale of the vehicle was made to a prospective buyer.
For returning from the airport/railway station where the vehicle was delivered.
When it is driven to or from an exhibition of vehicles where it was propositioned for a sale.
The owner is driving the vehicle returning it from the financier since there was a fault from the side of the financier.
Procedure for Applying for a Trade Certificate
The procedure to apply for a trade certificate is described below:
The applicant can apply for a trade certificate by submitting Form 16.
In the next step, the charges levied for the issuance of the trade certificate must be paid by the applicant to the authority. The fee must be paid conforming to Rule 81 written under the Central Motor Vehicles Act, 1989.
If the vehicle fits in any of the categories specified below, a separate application has to be submitted by the applicant:
- Light motor vehicle
- Medium passenger motor vehicle
- Invalid carriage
- Heavy goods vehicle
- Medium goods vehicle
- Heavy passenger motor vehicle
- Any other form of motor vehicle
Documents Required for the Trade Certificate
The only document which the applicant needs to submit to the registering authority is Form 16.