Letter of authorization of GST proprietorship

Letter of Authorization of GST Proprietorship

Letters Kate

An authorization letter is written by someone who wants to allow someone else to act on his behalf. In the business world, this letter has a lot of significance, so people are required to be very careful when they write it. One of the most common types of permission letters is the letter written to permit GST proprietorship.

What is a letter of authorization of GST proprietorship?

This is a letter of authority in which the business owner authorizes someone to conduct all business transactions under the GST law. There are many situations in which this letter may be needed. People usually write permission letters when only one person has the authority, and that person wants someone else to hold this authority.

Why there is a need to write this letter?

The authorizer feels the need to write this letter when:

  1. There is a need to register the business under the law of GST, and the owner is either unavailable or does not know the proper procedure to follow. 
  2. When there is a need to cancel the business registration under the law of GST.
  3. When the company needs someone who can regularly communicate and correspond with the GST department, it allows someone to perform this operation. If the business receives any query from the tax department, the person with the said authority will communicate.
  4. People who have the authority are often asked to prove it. In that situation, they must show this letter as proof.

What are the steps to write this letter of authority?

The steps given below will give you a complete guide that you can follow

Find the appropriate person:

It is important to remember that not every individual can be chosen to represent a business and act as a GST proprietor. Choose the person who is responsible and also has enough knowledge about the procedures to follow.

Know the legal requirements:

You should know whether you can give this authority to someone or not. If yes, what would be the procedure, and what documents are required to complete this job?

Make sure that you define the type of authority:

Some people don’t know how crucial it is to specify the authority level they are giving someone. This way, they put their business at risk. So, it is mandatory to mention what the subject of the letter shall be able to do after he/she has been given the authority.

Write specifics accurately:

Since this letter can also be used for legal purposes, make sure that the specifics that need to be written in this letter are clearly defined and that no such details are missing. For instance, if you are choosing someone to act on behalf of your company, it is essential to mention the complete and accurate name of the company.

Give your introduction:

Only a few people can write this letter. The reader will want to know who is trying to transfer the authority. Therefore, give your introduction and ensure that you are the one who can write this letter.

Mention when this letter will be operational:

Sometimes, the consent is only for a few conditions. In this situation, it is important to mention that condition. Also, write clearly that the consent will not be applicable if the condition specified in the letter is not fulfilled.

Below is a sample letter of permission.

Sample letter:

Dear Recipient,

This is to inform you that I (mention your name), the owner of the property, authorizes Mr. ABC to operate the business of (mention the type) in the area of (note the address. Furthermore, I would like to state that I have no objection to authoring MR. ABC uses the address of my property as a mailing address. He is allowed to obtain company registration under GST.

Owner of the company.

Signatures

_________________

Letter of authorization of GST proprietorship

File: Word (.docx)
Size 22 KB

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