Reverse charge in VAT

[Rakesh K Paliwal]

Dear member,

Any line 'Reverse charge in VAT' is available in the context of VAT?, If yes please let us know the definition of the same.

Regards

Rakesh K. Paliwal.

[YAGAY andSUN]

Dear Rakesh,

There is no reverse charge in VAT but Purchase Tax may be leviable if a dealer purchases goods from unregistered dealer in the State and dispose off such goods either in the State or Inter-State without payment of VAT, then, buyer of the such goods is liable to pay the purchase tax at the applicable rate.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

Purchase tax applies where a buyer purchases from an unregistered dealer and disposes goods without VAT. Reverse charge in VAT is not recognized; instead, Purchase tax may be payable by the buyer where goods are bought from an unregistered dealer in the State and subsequently disposed of in-state or inter-state without payment of VAT, making the purchaser liable to pay purchase tax at the applicable rate.