UNREGISTERED PURCHASE _ PURCHASE TAX

[MITHUN SAHA]

I have been working in a Private ltd company, issue is: we have purchased coal from Guwahati to be used in State of west bengal (central purchase) from an unregistered dealer. The coal is to be used to produce a final product which is exempted from sale tax/Vat. My question is whether we have to pay purchase tax on such unregistered purchase from Guwahati .

[YAGAY andSUN]

Dear Mithun,

Yes, you are liable to pay Purchase Tax under the provision of Assam VAT Act read with Rules made thereunder. Please check Section 12 read with Section 10 of the Assam VAT Act in this regard.

Regards,

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

Purchase tax liability: acquiring from an unregistered dealer triggers purchase tax despite exempt final product. A registered purchaser who buys goods from an unregistered dealer is liable for purchase tax under the Assam VAT regime even if the purchaser's final product is VAT/exempt; the exemption of the final product does not remove the purchase tax obligation triggered by acquisition from an unregistered supplier, and the purchaser should consult the Assam VAT Act provisions cited for compliance.