PURCHASE FROM UNREGISTERED DEALER

[Atit Jain]

Sir1)If we purchase taxable goods from unregistered dealer than we how will we pay tax as tax paid will not be under any TIN no. And how will it be deposited ti govt.?2)If we purchase non taxable goods from unregistered dealer than what is the provision?

[YAGAY and SUN]

Dear Atit,

If the dealer is unregistered then he cannot charge the Tax. You would have to deposit the purchase tax on goods purchased from unregistered dealer, if such, goods are disposed off other than by way of sale.

Further, you have not provided under which State VAT Act you fall?

Regards,

YAGAY and SUN

(Management, Business & Indirect Tax Consultants)

AI Summary

Purchase tax liability arises when goods from unregistered dealers are disposed other than by way of sale. Unregistered dealers cannot charge tax; purchasers may be liable to pay purchase tax where goods bought from an unregistered dealer are disposed of otherwise than by way of sale. The purchaser is responsible for depositing that tax, and the exact procedural and compliance requirements depend on the relevant State VAT Act, which was not specified in the enquiry.