Section of purchase

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What is purchase u/s 3 and u/s 5(3).What is turnover of purchases taxable u/s 12(1)(a) and 12(1)(b)

AI Summary

Understanding VAT and Sales Tax: Key Insights on Sections 3, 5(3), 12(1)(a), 12(1)(b) for Dealers' Liabilities A user inquired about the interpretation of certain sections related to VAT and sales tax, specifically sections 3, 5(3), and 12(1)(a) and 12(1)(b). The response from a firm advised that understanding these legal provisions requires reading the relevant sections together. Section 12 outlines the contingent liability for registered dealers to pay tax on certain purchases, specifying conditions under which tax is applicable, such as purchases not intended for specified purposes or those in the Negative List without input tax credit. Additionally, dealers with a turnover exceeding fifty lakh rupees must pay tax on their purchases.