A Registered dealer has made purchases from Unregistered dealer in Hyderabad in the FY 2014-15 and didn't disclose aforesaid purchases in VAT returns and didn't pay any taxes on those said purchases.
Is the Registered dealer liable to pay Taxes on said purchases?
If yes, what is the rate and when could claim input credit of the same?
Regards
Dealer Must Pay Purchase Tax for Undisclosed Goods from Unregistered Dealer; Offense for Non-Disclosure in VAT Returns A registered dealer in Hyderabad purchased goods from an unregistered dealer during the fiscal year 2014-15 but did not disclose these purchases in their VAT returns or pay taxes on them. The query raised concerns about the dealer's tax liability and potential input credit claims. YAGAY and SUN, a consultancy firm, responded that if the goods were disposed of other than by sale within Telangana, the dealer must pay purchase tax at a rate of either 5% or 14.50%, depending on the goods' classification. Failing to report these purchases in VAT returns constitutes an offense. (AI Summary)
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