1. Certain goods were purchased (vat is applicable to those products) from unregistered dealer and certain work orders were also issued to some unregistered contractors (work includes supply of material with service and combined bill received after execution of the work and vat not charged by the party). In these cases should we (An educational institute not registered with Vat since selling of products is not its business. Its main activity is to provide educational/teaching services to the students) pay any purchase tax under WB Vat Act? 2. A party has submitted quotation for a job work (supply of office chairs) and not indicated any vat therein. Even he has intimated in writing that he has no vat registration number. In this circumstances, can we simply reject the quotation of the party on the below mention grounds: a) The said party is an unregistered dealer b) The party has failed to comply statutory and tax compliances and not even furnished any exemption certificate under WB Vat Act. Note: In our tender letter no such clause was there regarding mandatory disclosure of vat registration number. However, it is written that “if there is explicit mention of taxes in your offer then quoted price will be deemed inclusive of all such taxes. No other charges except those mentioned clearly in the quotation will be paid”.
25 December 2009
in following cases, a person who purchases the goods from URD is liable to pay the purchases tax. 1. where a dealer is liable to pay tax on any item, and he purchase the goods from URD. since you are not liable to pay any tax as you are not engaged in selling the goods, hence you are not liable to pay purchase tax. 2.where any person or dealer has purchasesd the taxable goods under a certificate or declarition given by him under any provision of state vat act or earlier law, rule or notification, and conditions, recitals or undertaking of such certificate or declariation not compiled with, then that person or dealer will be liable to pay the purchase tax. check your self under this condition.
As regards point sl. No.1 above, the matter is clear.
Regarding point sl. No.2, you are further requested to clarify the matter in terms of "under a certificate or declarition given by him under any provision of state vat act or earlier law, rule or notification, and conditions, recitals or undertaking of such certificate or declariation not compiled with."
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