liability of vat on paint and polish material purchased for own use.

[Babita Bhardwaj]

dear sir/madam,

 I purchased paint and polish materials for around Rs. 32000 from M/s aggarwal sales corporation kotral mubarakpur new delhi in last week of december 2012. The shopkeeper  declined to accept account payee cheque and insisted for self bearer cheque. He assured that he is and will be fully responsible for rates and quality offered by him and will return/  exchange goods found over priced/of  inferior quality or rendered surplus or found other than that what  I required. He took the cheque  and assured that proper bill will be given along with supply of material. In the meantime  my husband got call from axis bank seeking confirmation if we have given self cheque to M/s aggarwal sales corporation whose person was there in the bank to take the cash. And the articles were supplied late in the evening through a passenger car instead of a goods carrier for which I paid to him around  Rs 1000.

On having found that he has charged more in comparison of rates prevailing in the market  and also supplied short in quantity I requested him to return the goods overpriced and supply the goods for which he took the payment but he has not been acceding to my request  and not keeping his assurances for last three months.

I have also got to know that he  might have  evaded the vat and cheated the exchequer also beside having cheated me as   he did not issue any proper bill along with supply of material.

Now I want to know as to what options do I have to get him penalized  for his male practices of cheating me and the govt. I do have only his visiting card, a rough bill on a plain paper in his handwriting and self cheque no.and date vide which he got the payment/

An early reply is solicited very much.

 

[YAGAY andSUN]

This is a very surprising query I have ever got in my 15 years of Tax Consultant Career.  Where a Home Maker wants to Fight Back.  Keep it up and Hats off for you for this courage!

 

Well, it seems that by buying paint without getting the bill and paying through Bearer Cheque, you unintentionally saved VAT @ 12.50% on the impugned goods. Don't take it otherwise, but it is your mistake as you had not paid VAT and did not get the Bill. Government uses tax amout collected for development of our Country. We are not doing any thing for our country. We alway curse Government for not doing anything. But what we do for our beloved Country 'INDIA' ?  Nothing.  We steal, evade taxes, curse Government, fights on petty issues, indulge in senseless matters.

If you buy goods and avail services without getting the bills/invoices then you can't seek the legal aid under Consumer Protection Act.  Whenever you make any purchase or buy goods or avail services, then, ask for a bill/invoice as the case may be.

If you want to fight back, then, calculate the Tax on your own and meet with Mr. Prashant Goel, the Hon'ble Commissioner of DVAT Department, ask him that you are willing to pay this tax amount .  This way you will show your bonafide.

DVAT Department always says, Pay your Tax (VAT) Honestly and be a good citizen. You may now talk to the paint supplier in a totally different language that you will discuss this issue with Mr. Prashant Goel, the Hon'ble Commissioner of Trade & Taxes, DVAT Department, if you do not issue me a bill for buying and refund the excess charged amount on such supply of impugned goods.

Further, Bank must have a CCTV footage of the person who had came to get the cheque cleared. You can also ask your banker to produce this CCTV footage as documentary evidence on the demand of DVAT Department.

AI Summary

VAT liability concerns where no bill was issued; compute unpaid tax, preserve evidence, and seek tax authority intervention. Liability arises where a purchaser buys goods without a proper invoice and pays by bearer cheque: supplier non issuance of a bill may indicate non remittance of VAT and impedes consumer forum relief. The recommended course is to compute the unpaid tax, approach the tax department to show bonafide and seek investigation, preserve documentary and bank CCTV evidence, and press the supplier for a bill or refund while pursuing administrative enforcement rather than relying on consumer remedies.