VAT on consumption of goods

[Sukhdeep Singh]

One of my clients is registered under Punjab Vat act. The business of the client is providing services i.e. Laboratory services.

Now the department has issued notice asking for VAT on Purchase of goods though no goods have been sold.

 

Kindly guide.

[YAGAY and SUN]

Department may ask to dealer to pay the purchase tax on following condition, namely:-

1. If the goods were purchased from the unregistered dealer and dispossed off by any other means except sales.

Though, you have shared limited facts, it is hard to reply on the limited facts.  Please elaborate to enable us to revert.

AI Summary

Purchase tax liability may arise where goods bought from unregistered dealers are disposed otherwise than by sale. A registered laboratory service provider received a notice seeking VAT on purchases; the department may demand purchase tax where goods are bought from an unregistered dealer and disposed of otherwise than by sale, and further factual details are required to determine applicability.