TaxTMI 
TaxTMI 
If i have ITC and Sale Inter State 2% then Why Deposit Purchase Tax on Purchase unregistered deler ???
Why Purchase Tax Paid if Purchase of Unregistered Deler
12 Feb 2016 
2 Replies 
951 Views Asked by
Purchase tax distinct from input tax credit; recoverable only when goods are later sold with VAT or CST payment.
Purchase tax is a distinct levy on purchases from unregistered dealers, imposed to maintain the value addition chain and not directly adjustable against output VAT/CST as ITC. Purchase tax paid may be recovered as input tax credit only when the goods are subsequently sold with VAT or CST payment; it is not available as ITC for stock transfers or disposals that do not attract VAT/CST. (AI Summary)
Purchase tax is a distinct levy on purchases from unregistered dealers, imposed to maintain the value addition chain and not directly adjustable against output VAT/CST as ITC. Purchase tax paid may be recovered as input tax credit only when the goods are subsequently sold with VAT or CST payment; it is not available as ITC for stock transfers or disposals that do not attract VAT/CST. (AI Summary)