How its treated in Tamilnadu

[Asked by Guest]

Hi

We are registered Wooden handicfarts dealer based out of Chennai , Tamilnadu

1 ) I purchase Handicrafts from manufaturers from Karnataka / Andhra , they dont have TIN or CST as all are small direct govt. licensed artists. How it can be brought in to our books and accounts as per TN VAT ?

2 ) If i purchase old collections and furnitures from direct home when they dispose ( kind of scrap ) how it can be brought in to our books and accounts ?

In both the above 2 case there will be no proper bill

Regards

Kumar

[Ganeshan Kalyani]

Sir, the point wise reply is as under :

1) it seems to be not possible as interstate sale/purchase can take place only with the registered dealer. The CST Act, 1956 provides the condition in this regard.

2) in the State of Tamil Nadu, a provision of purchase tax is applicable. Since the seller will not collect and pay tax due to not having registration the purchaset has to pay the tax applicable.

Thanks.

AI Summary

Interstate sale registration requires seller registration; purchaser may incur purchase tax when sellers are unregistered
Interstate purchases require dealing with registered dealers; acquisitions from unregistered out of state artisans cannot be treated as standard interstate dealer transactions. Where sellers lack registration and do not collect tax, Tamil Nadu purchase tax provisions impose tax liability on the purchaser. Absence of proper bills does not relieve the buyer of the obligation to account for and remit purchase tax, and the purchaser must record such transactions and tax payments in their accounts.