FAQ on trade
(1) Qn : I wish to trade/deal rubber in my locality. To become a rubber dealer, what legal formalities I have to complete ?
Ans : In order to become a rubber dealer, you have to apply to the Board for a licence in Form No B. On receipt of the application and if it is satisfied with regard to the suitability of the applicant, the Board may issue a licence in Form C.
(2) Qn : From where and to whom I have to contact for Rubber Board’s dealers licence ?
Ans : To get Dealers licence, you have to apply to Rubber Board in the prescribed form No B. The licence will be issued by the Dy. Director (ED), Rubber Board Sub Office, Willingdon Island, Kochi – 682 003 Tel No : 91-484-2666175.
(3) Qn : Is there any fee for dealers licence ?
Ans : Yes, Along with the application you have to remit Rs 750/- towards Board’s Account as application fee + processing charges for 3 years since the Board is issuing Dealers licence initially for 3 years only. Thereafter, licence will be renewed for five years for which the prescribed fee is Rs 1,250/-
(4) Qn : I have Rubber Board’s dealers licence. I want to know what grades of rubber I am permitted to purchase and sell with this licence ?
Ans : You may purchase/sell all grades of Natural Rubber in the form of RSS, ISNR, Latex, PLC, EBC, Scrap etc.
(5) Qn : I have no godown to stock rubber. But I want to take a dealership licence from Rubber Board. Is it possible ?
Ans : The applicant should have sufficient storage facility for storing rubber and its address details should be disclosed in the application for considering issue of Dealers Licence. However, if the applicant furnishes a declaration that he has no intention to stock rubber, then the Board will consider to issue licence based on the declaration.
(6) Qn : What are the statutory returns to be submitted by the dealers and if there is any delay in submission of returns, what are its legal implications?
Ans : Every licenced dealer shall submit to the Board, a true and correct monthly return in Forms H2 and L, giving the particulars of rubber stock held, acquired or disposed of by him.
(7) Qn : Is Dealers Licence transferable ?
Ans : No, Dealers Licence is not transferable.
(8) Qn : Why dealing in rubber requires a licence ?
Ans : Natural Rubber is a controlled commodity. The control is made effective by issuing licences as prescribed by the Rubber Act.
(9) Qn : I am a rubber dealer in Kerala. I wish to sell the rubber in New Delhi. What documents I have to carry during the time of transport of rubber from Kerala to New Delhi ?
Ans : You should hold a valid declaration issued by the Board in the prescribed form at the time of transport of rubber from one state to another state. The form to be used by a licenced dealer under Rule 39 is Form N2.
(10) Qn : Is Form N2 transferable ?
Ans : The form N2 issued by the Board to a person shall not be used in the name of any person other than the person to whom it is issued.
(11) Qn : What is the procedure for renewing Dealers Licence ?
Ans : In order to renew the Dealers Licence, you may submit the prescribed application complete in all respects to the office of the Dy. Director (ED), Rubber Board Sub Office, Willingdon Island, Kochi, Kerala State.
(12) Qn : What are the different types of licence issued by Rubber Board ?
Ans : Rubber Dealers Licence, Rubber Processors Licence and Rubber Goods Manufacturers Licence are the three licences issued by the Board. In addition to this the Board issues Registration cum Membership Certificate (RCMC) for export purpose.
(13) Qn : I am a rubber processor and having a licence from Rubber Board for processing only. Can I sell the processed rubber to a rubber dealer ?
Ans : Yes. You can sell the processed rubber to a rubber dealer having Dealers Licence.
(14) Qn : I have a dealers licence from Rubber Board. So far I have not purchased or sold rubber. Now I wish to purchase rubber locally and to sell it to licenced dealers. What type of records should I keep in my shop to satisfy the Rubber Board regulations?
Ans : Daily Stock Register, Purchase Bill, Sales Bill, Counter Purchase Bill, Cash Book, Ledger and copy of N Form for inter-state transactions are the major records required to be kept.
(15) Qn : I have submitted the monthly return to the Board but there is a mistake in the purchase and stock figure. How can I correct it ?
Ans : You can file a revised return.
(16) Qn : What are the present sales tax structure in buying and selling natural rubber ?
Ans : Sales tax department in the concerned state levies the sales tax as per the prevailing tax structure. You may check with local sales tax authorities.
(17) Qn : I am dealing in reclaimed rubber. One of my friends informed that Rubber Board’s Dealers Licence is required to deal reclaimed rubber. Is it true ?
Ans : No. Rubber Board’s dealers licence is required to purchase and sell Natural Rubber only.
(18) Qn : I wish to deal NR in the form of RSS, ISNR and Latex. Is the rubber cess payable in all these forms the same ?
Ans : Yes. The current rate of rubber cess is Rs 1.50 per kg. In the case of latex, cess will be calculated based on its DRC.
(19) Qn : What is the standard unit for measurement of latex in domestic sales ?
Ans : kilograms (kg).
(20) Qn : Now I am dealing in RSS grade rubber. I wish to deal ISNR also. Is there any separate licence required for dealing ISNR ?
Ans : No. The holder of a Dealers Licence can purchase or sell all grades of Natural Rubber.
(21) Qn : For the last five years, I am working as a rubber dealer. Now, I wish to stop rubber business. The validity period of my licence expires on 31 March 2013. What is the legal formality that I have to complete in this case ?
Ans : You may give a request to the Dy. Director (ED), Rubber Board Sub Office, Willingdon Island, Kochi. The original licence should be surrendered and all pending claims, cleared.
(22) Qn : I am a partner of rubber unit having 40 years experience in dealing rubber. Now I wish to retire from the partnership and my son indents to join as a new partner and continue the business. Is it required to cancel the present dealers licence and take fresh licence ?
Ans : In the case of reconstitution of Partnership, you should submit the new Partnership Deed, new affidavit and original Dealers ID Card along with a request to renew the licence in the name of the new partners.