query on sale

[Guest]

A partner ship firm registered under vatAnd CST having given/ allotted the following items to resell:

1. Kiryana goods

2. Confectionery goods

3. Stationary goods.

Now this firm sold some goods not mentioned in the vat registeration certificate- like electric iron. electric bulbs, mobiles etc.

what is the liability of the firm- having sold items not mentioned in the registeration certificate.

[YAGAY andSUN]

It is an offense under Punjab VAT Act. Please get your RC amended to incorporate the goods intended for trading.

[PARTHASARATHY V]

At the time of assessment, you may be ending up for payment of Purchase tax and input credit not permissible, also the sale of goods will attract VAT.

Hence please amend the RC immediately to avoid unnecessary levy of tax and smooth availment of Input Tax Credit.

AI Summary

Registration mismatch under VAT: unlisted sales can trigger purchase tax, loss of input credit and VAT exposure. Sales of goods outside the registered business description constitute an offence under Punjab VAT Act and may lead to assessment consequences: imposition of purchase tax, denial of input tax credit, and VAT on those sales; the registration certificate (RC) should be amended to include the additional goods to align trading activity with the registration.