From unbranded sellers - Tamilnadu

[Asked by Guest]

Hi

We purchase old furnitures from Unbranded sellers and also from houses and then refurbish it and sell it . We are registered dealer with showroom with VAT and CST. How to treat this unbranded purchase of wooden furnitures in to account and any extra tax to be paid for this unbranded purchase.

Thanks in advance.

Regards

Ponnukumar

AI Summary

Purchase tax on unbranded purchases may apply; purchase tax can be claimed as input tax credit in returns.
Purchases of used, unbranded furniture from unregistered sellers may attract purchase tax when the goods are taxable and the seller does not charge tax; this levy applies where the purchaser consumes or uses the goods in manufacture or disposes of them other than by sale in the State. A registered dealer can treat purchase tax paid as input tax credit and adjust it in the next monthly return. Practical recordkeeping-such as obtaining a signed voucher from the seller-is necessary for accounting and claiming input credit, though no specific voucher format is prescribed in the text.