Purchase from un registered dealer

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2013 Dear sir,

As we know that we can not take vat credit if we purchase from un registered dealer.
but any way we purchase from un registered dealer. I want to know that waht are the dificulties if we purchase from un-reg Dealer. We are the registered Dealer.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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13 August 2013 you can purchase goods for unregistered dealer.
as the unregistered dealer is not registered he shall not charge VAT so there is no question of taking credit of Input VAT paid.

There is no difficulties for purchasing goods from unregistered dealer unless you have opted for composition scheme (most of the composition scheme dealer can not purchase goods from unregistered dealer so plz check the conditions of composition scheme if you are composition scheme dealer)

Vishnu Saboo

Vishnu Saboo (Expert)
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21 February 2015 If you are registered dealer and not having composition scheme, you have to pay purchases tax on your purchases made from URD. though you can take credit of same as ITC.

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