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What Are The Provisions For Dealer License Under Legal Metrology Act?

calendar01 May, 2023
timeReading Time: 3 Minutes
What Are The Provisions For Dealer License Under Legal Metrology Act?

The Legal Metrology Act regulates the respective seller, manufacturer or dealer of such weight and measurement products, as per section 23 of the Legal Metrology Act, 2009. Every dealer of weight and measurement products must get a license from its respective zonal of the Legal Metrology Authority of its state before starting the sales of any weight and measurement products. The Controller will check all the provisions for dealer license before granting the license.

What Is A Dealer License Under Legal Metrology Act?

The dealer license applies to a person or firm doing the trading & marketing of weights and measures. To get the dealer license, an applicant shall obey all the provisions for dealer license under State Legal Metrology (Enforcement) Rules, 2011, under the Legal Metrology Enforcement Rules, 2010.

What Are The Forms Required For Applying To Obtain A Dealer License Under Legal Metrology?

  • For applying a new application for a dealer license in weights and measurements, Form LD-1 by schedule-IIA must be filled by the applicant.
  • The renewal of the dealer’s license needs Form LD-2 under schedule-IIB to be filled and issued using Form LD-3 according to Schedule III of the Act.

What Are The Necessary Provisions For Dealer License Under Legal Metrology Act?

Following are some essential provisions for dealer license required for obtaining a Legal Metrology Dealer License

  • Business Premises Requirement
    • Proof of legal possession of the premises is mandatory to get the dealer license. The applicant must have legal and physical possession of the premises and submit the documents like the latest Sale Deed or Rent Receipt, House Tax Receipt, and NOC from the property owner.
    • The minimum area required for the premises should be appropriate & enough and with entrance without opening any residential part of the premises.
  • Constitution Of The Businesses

The firm should submit a Partnership Deed copy duly attested by the notary, First Class Magistrate, or oath commissioner. If the firm is a Private Company and a Limited Company, an MOA (Memorandum of Association) approved by the MCA or Ministry of Company Affairs, Government of India, is needed.

  • Planning

The applicant or dealer must provide a site plan of the premises while submitting the documents.

  • Financial Status And Business Proof

The applicant must provide proof of the financial status of the person or company to sell any weights & measures. The controlling authority shall consider the financial status before issuing the Legal Metrology dealer license by verifying the applicant’s copy of the Sales Tax Registration Number (STRA) is registered with the concerned department.

Provisions for Dealer License under Legal Metrology Act

Following are the provisions for dealer license under Legal Metrology Act:

  • As per section 23 of the Legal Metrology Act, 2009[1]. The authorised state controller of the Legal Metrology department of the respective state has the right to provide a dealer license to the business.
  • In India, many State governments have an online process for applying for a dealer license, and some states have an offline method. However, the dealer license issuance process is only partially online in all cases.
  • As it involves inspection by the zonal state Legal Metrology Officers. Only after the legal metrology officer’s physical verification of the document will generally recommend the application for the final issuance of the dealer license to the applicant.
  • Many states, while applying for the dealer license, request a copy of the dealer agreement from the original tools manufacturer for which the dealer is applying for the dealer license.
  • Further, the government authority may also ask for a copy of NOC from the manufacturer of weight and measurement products.

What Are The Compliances After Obtaining The Dealer Licence?

Every dealer registered under the Legal Metrology Act, 2009, must keep the prescribed records of selling weights and measurement items. Every dealer must take care that (They) sell only those weighing and measuring items duly modelled and approved by the Ministry of Central Legal Metrology Department. Such weighing and measuring items must be duly stamped and verified under section 24 of the Legal Metrology Act, 2009.

What Documents Are Required To Obtain A Dealer Licence?

  • Business Proof of the applicant (rent agreement/ EB bill)
  • PAN & GST of the applicant entity,
  • PAN & Aadhaar of promoters of the business
  • NOC from the landlord of the business in case of rented business premises.
  • Copy of duly registered rent agreement in case of rented business premises.
  • NOC from the (Original manufacturer of weighing and measuring instruments whose goods the dealer will sell).
  • Dealership agreement with the Original manufacturer of weighing and measuring instruments whose goods the dealers will sell.
  • Copy model approval of the weight or measure you intend to sell.
  • Passport-size photographs of each partner

Conclusion

Every dealer should abide by the rules and regulations of the Legal metrology act to perform as the best practice for Legal metrology compliance and avoid penalisation. The dealer should follow all the provisions for dealer license under the Legal Metrology Act to enhance the dealers’ goodwill and avoid unnecessary penalisation like suspension and cancellation of license.

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