Real Estate Agents and Motor Vehicles Dealers ( Regulation of Business) Rules, 1980

GOVERNMENT OF THE PUNJAB

EXCISE AND TAXATION DEPARTMENT

Lahore dated the 31^st December, 1980

 NOTIFICATION.

No. Tax (E&T) 2(2)/80-1670 In excise of the powers conferred on him by Section 11 of the

Punjab Real Estate Agents and Motor Vehicles Dealers (Regulation of Business) Ordinance, 1980

(VI of 1980) the Governor of the Punjab in pleased to make the following rules: -

1.               (1)        These rules may be called the Real Estate Agents and Motor Vehicles Dealers

( Regulation of Business) Rules,  1980

(2)                They shall come into force at-once.

2.               (1)        In these rules unless there is anything repugnant in the subject or context: -

(a)             “certificate” means a certificate issued under Section 3 of the Ordinance and includes a certificate duly renewed under Section 6.

(b)             “form” means a form appended to these rules.

(c)              “Ordinance” means the Punjab Real Estate Agents and Motor Vehicles Dealers (Regulation of Business) Ordinance, 1980.

(d)             “Ordinary place of business” means such place within the territorial limits of the registering authority concerned where a real estate agent or motor vehicles dealer, as the case may be, ordinarily carries on business.

(e)             “transaction” means a transaction referred to in clause (C) or (F) as the case may be of Section 2 of the Ordinance; and

(f)              “treasury” means a Government treasury or sub-treasury of a branch of a bank authorized by Government to receive payment on its behalf.

(2)                All other words and expressions used herein and not herein before defined shall be deemed to have the meanings respectively assigned to them in the Ordinance.

3.               (1) An application for registration as a real estate agent or a motor vehicles dealer, as the case may be, shall be in form-I which shall be duly signed and verified by the applicant and shall be accompanied by a receipt showing the deposit of the prescribed fee into the treasury and the security required to be provided under these Rules.

(2)                Where the applicant is a firm, the application shall be signed and verified by all the partners of the firm and where the applicant is a company, the application shall be signed and verified by the person authorized under the Memorandum and Articles of Association of the company to sign and verify instruments on behalf of the company.

(3)                The application shall be presented before the Registering Authority either in person or by registered post (acknowledgement due) by the applicant or his agent duly authorized by him for the purpose.

4.               (1)        An application for renewal of the certificate shall be in Form-II which shall be duly signed and verified by the applicant in the same manner as the application for registration under rule 3.

(2)                An application for renewal of the certificate shall be made within thirty days proceeding the date of expiry of the certificate and shall be accompanied by a receipt showing the deposit of the prescribed renewal fee into the treasury.

(3)                The application for renewal of the certificate shall be presented in the same manner as the application for registration under rule 3.

5 [No fee shall be payable for the grant or renewal of a certificate, issued Under Section-3 of the Ordinance.]

6.               (1) The security to be furnished by a real estate agent or a motor vehicles dealer shall be rupees five thousand and will be in the form of cash.

(2)             The security shall be deposited in the Government Treasury under Head “3833Deposit of the Punjab Real Estate Agents and Motor Vehicles Dealers”.

(3)             The security shall be refunded on the cancellation of a certificate of registration or on the expiry of the certificate if the real estate agent or the Motor Vehicles Dealer, as the case may be does not want to continue the business.

7.               (1) Before granting a certificate of registration the registering authority may call upon the applicant to appear before it and to satisfy that the particulars given in the application are correct and that the applicant does not suffer from any of the disqualifications specified in section 4 of the Ordinance, The registering authority may make such other inquiries as it may consider necessary to satisfy itself that the applicant is entitled to the grant of the certificate.

(2)             The registering authority for the purpose of renewing a certificates, shall not call upon the applicant to appear before it to satisfy itself that the particulars given in the application are correct or the institute any inquiries unless it is in possession of some prima facie evidence of the fact that the applicant has suffered from any of the disqualification specified in section 4 of the Ordinance or is otherwise unfit to hold’s certificate.

(3)             f the registering authority decides not to grant a certificate or renew it, it shall record its reasons therefore and shall supply a copy of its order to the applicant.

8.               (1) If the registering authority decides to grant the certificate to an applicant, it shall issue’s certificate in Form-III.

(2)      The renewal of a certificate shall be made in the form of an endorsement under the certificate duly signed by the Registering Authority.

(3)      The certificate shall be non-transferable.

(4)      Where there is an introduction of a new partner;

in a firm holding a certificate as real estate agent or a motor vehicles dealer, the firm shall make an application to the registering authority indication the name and other particulars of the new partner and the registering authority on being satisfied that the new partner is not disqualified of unfit to hold a certificate, shall make necessary entries in the certificate and the register of certificates maintained under rule 9.

(5)      The certificate shall be exhibited at some prominent place in the ordinary lace of business of the certificate holder.

9.               (1)        The registering authority shall maintain a register in Form IV containing particulars of the certificates issued by it and renewed from time to time.

10.            (1)        Where the certificate holder decides to change the ordinary place of his business within the jurisdiction of the registering authority which issued the certificate to him, he may make an application to the registering authority accompanied on being satisfied about the correctness of the change of the ordinary place of business, revise the place of business entered in the certificate and may also made necessary changes in the register of certificates.

(2)      Where a certificate holder intends to change the ordinary place of his business to a place outside the jurisdiction of the registering authority which issued the certificate to him he

may make an application to the registering authority in whose jurisdiction the ordinary place of his business shall thereafter be situated and the new registering authority, after obtaining the record from the previous registering authority, and on being satisfied about the correctness of the changed place of business, revise the certificate and make necessary entries in his own register of  certificate.

11.            (1)        A certificate holder shall maintain the following record at his ordinary place of business.

(i)               A register in Form V containing the particulars of transactions arranged or negotiated by him.

(ii)             A receipt book in Form VI with each page serially numbered and containing particulars of the payments received by the certificate holder in respect of transactions arranged or negotiated by him from time to time.

(2)             Every transaction arranged or negotiated by the certificate holder shall be entered by him in the register forthwith.

(3)             The certificate holder shall immediately issue a regular receipt for every payment received by him in respect of every transaction arranged or negotiated by him.

(4)             The register of the receipt book maintained under sub-rules (1) and (2) shall not be destroyed by the certificate holder without the previous permission in writing of the registering authority.

12.            (1)        The registering authority or any other officer of the Excise and Taxation Department, not below the rank of Sub-Inspector, may inspect the record maintained by the certificate holder under rule 11 and may make any note thereon or take any extract there from or may seize the same.

(2)             Where any record is seized under the provisions of sub-rule (1) the registering authority or the officer seizing it, shall issue a receipt to the certificate holder.

(3)             The registering authority may at any time call upon the certificate holder to bring and produce before him the record maintained by him under rule 11.

13.            (1)        A certificate holder shall submit to the registering authority within one month of the close of every financial year, a return in Form VII.

(2) The registering authority may require a certificate holder to supply him such additional information in respect of transactions arranged or negotiated by him or in respect of the record maintained by him and the certificate holder shall supply such information within such time as may be required by the registering authority.

14.            (1)        The rate of commission and other remuneration chargeable by real estate agent on a transaction arranged or negotiated by him shall not exceed: -

(a)             Half a month rent in the case of transaction of lease or tenancy;

(b)             Two percent of the amount of consideration involved in transactions of mortgage;

(c)              Two percent of the value of the property involved in transactions other than those mentioned in (a) and (b) above.

(2)      The rate of commission and other remuneration chargeable by a motor vehicles dealer shall not exceed 1% of the value of the motor vehicle sold, exchanged or transferred or that of the amount against which the motor vehicle is pledged;

(3)      The maximum rates chargeable under sub-rules (1) and (2) are the rates chargeable in respect of a transaction irrespective of whether the commission and other remuneration is payable by one of the parties only or by both the parties to the transaction.

15.            (1)        Any person aggrieved by an order of the registering authority passed by it under these rules, may prefer an appeal to the Director, Excise & Taxation, concerned, within thirty days of the communication of the order to him.

(2)             An appeal may be admitted by the Director, Excise & Taxation, after the period of thirty days mentioned in sub-rule (1) if the applicant satisfies the appellate authority that he had sufficient cause for not preferring the appeal within the prescribed period.

(3)             The appeal under sub-rule (1) shall be preferred in the form of a memorandum bearing the requisite court fee mentioned in column 3 of item 11 (aa) of Schedule II of the Court Fees Act, 1870 (VII of 1870) and shall be duly signed by the appellant and presented to the appellate authority or to such officer as it appoints in this behalf. The memorandum shall be accompanied by a copy of the order appealed against unless the appellate authority dispenses with this requirement.

(4)             The appellate authority shall not give its decision unless the person concerned has been given a reasonable opportunity of being heard.

16.            The fees payable under these Rules shall be credited to the head “0000-Tax Revenue0200-Indirect Taxes (on commodities and transactions)-0299-Others-Fee for registration of Real Estate Agents and Motor Vehicle Dealers”.

BY ORDER OF THE GOVERNOR OF THE PUNJAB

MUHAMMAD ASLAM

SECRETARY TO GOVERNMENT OF THE PUNJAB

EXCISE & TAXATION DEPARTMENT

Substituted vide notification No.SO(Excise)E&T-VII-1/98, dated 30.06.2004.