Purchase from unregistered dealer

[guna ch]

Dear sir/s

Could you please advice me , if the goods are purchsed from unregistered dealer ,does the buyer has to pay the VAT if he is a registered dealer. if he should pay how this amount should be treated either inputVAT or OutputVAT, Can we adjust before paying the amount .

Kindly suggest me what are the provisons IF GOODS ARE PURCHASED FROM UNREGISTERED DEALER

[Ganeshan Kalyani]

As per section 4(4)(iii) Purchase tax payable. The rate of tax is given in Act is 4 percent . Is this the current rate or it is change to 5 percent .

Dear Experts

I was reading the above discussion and I am now wondering if similar provisions are there in Maharastra VAT Act. Please enlighten

Under Karnatka VAT Act, If goods purchased from Unregistered delaer and If goods not falled under Sechedule 1 Goods ( Exempted Goods), then the buyer need to pay VAT on URD Purchases. Further, VAT Input is available subject to payment of VAT and Input eligibility of such goods. However, its subject Local VAT Act.

[ravi thakkar]

if unregistered dealer sale goods to interest, to whom tax is applicable

and if applicable to purchaser so, it is liable to VAT or CST

[ravi thakkar]

if unregistered dealer sale goods in Interstate, to whom tax is applicable

and if applicable to purchaser, so it is liable for VAT or CST

Sir,

could you please advise whether i have to pay purchase tax for buying arecanut slices from an unregistred person

for export purpose?. If so do we can claim it or adjust with input tax.

Yours faithfully

[Sumeet Singhal]

Dear sir

I had started new business for Agri product where we are getting very good response all across the country

but due to un organised sector we are not able to understand how to purchase the goods for more then 20000 at a time to show on our books as you know on Agri business one have any bank account or PAN card every vendor ask money on cash what so ever amount is but when we are selling the goods all the company want on Bill

if we are doing URD Purchase it not easy for us to show purchase for long volume kindly guide us for the same

sumeet

Dear Sir,

1. purchases from under registered dealers it should be shown in: non-creditable purchases

2. If the same goods will be sold to Local Registered Dealers Tax will be applicable VAT

3. If the Registered Dealer having INPUT VAT CREDIT IN THAT PARTICULAR MONTH YOU MAY ADJUST from PREVIOUS MONTH CREDIT INPUT

[BRAJESH KUMAR]

DEAR SIR/MADAM,

I AM EXPORTER. I PURCHASED PRODUCT FROM JHARKHAND FROM UNREGISTERED BUYER. MY COMPANY IS REGISTERED IN WEST BENGAL.

HOW TO MAKE ROAD PERMIT AND IF I PURCHASED FROM OTHER STATE.

PLEASE ADVISE ME

THANKS

BRAJESH

[Pradeep Kumar]

You can generate way bill through online. It is available in the WB Commercial taxes website. First we have to collect all details like name of material, quantity, value, supplier details, transporters details and then generate way bill. We can seek Local commercial tax practitioners' help for this.

Dear Sir,

I am a registered dealer in U.P. and want to make a purchase from an unregistered dealer in Delhi. Please advice me, how to make a purchase. Its a item to be sold further by paying CST/VAT.

Thanks.

[Ganeshan Kalyani]

Sir, without CST registration a dealer is not allowed to do interstate supply. The supplier is supposed to get register before the transaction is taking place. Sir, levying , collecting tax and paying it to Exchequer is the responsibility of the supplier.Thanks

[YAGAY and SUN]

Goods can be procured from unregistered dealers even in ISS transactions. If goods are further being disposed off on payment of VAT/CST, then no purchase tax would be applicable.

AI Summary

Purchase tax liability on purchases from unregistered dealers depends on use, disposition, and applicable state VAT rules.
Purchase tax may be levied on purchases from unregistered dealers depending on post purchase use and State law: no purchase tax where goods are used as inputs to produce taxable goods sold on payment of VAT/CST, but tax applies where goods are used to make exempt goods, disposed of otherwise than by sale, or transferred/dispatches outside the State otherwise than by sale; entitlement to claim such tax as input tax credit is subject to local statutory conditions and procedural compliance.