Claim for ITC

[Mohd Shariq]

Sir,I am purchasing construction material from unregistered dealer and reselling to registered dealer and I am paying tax on purchase also so can i claim ITC on sale?

AI Summary

Claiming Input Tax Credit for Construction Materials from Unregistered Dealers: Conditions and Variations Explained An individual inquired about claiming Input Tax Credit (ITC) when purchasing construction materials from unregistered dealers and reselling to registered dealers. Responses varied, with one stating that ITC is only available with a valid tax invoice, while others noted that some state VAT Acts allow ITC if the final product is taxable. In Andhra Pradesh, ITC is allowed under such conditions. It was clarified that the buyer pays purchase tax in reverse charge mode, not collected by the unregistered dealer. In Uttar Pradesh, ITC is available if the buyer is a registered dealer, as per the UPVAT Act.