02 December 2011
Hi sir\Mam What is the benifite of purchesing goods from URD(Unregester diler)Becuse they not given any Invice ?How we have to make sure on that entry in our account?
02 December 2011
Dealers who are not registered under the VAT Act are called as Unregistered Dealers (URD). Such dealers cannot issue tax invoice. They can neither Charge Tax nor Claim Input Tax Credit. There is no advantage of purchasing goods from such dealer because the purchaser will not be able to take any input tax credit on the goods purchased from such party and as such will have to bear higher tax on sales if it sells by adding vat on the goods. For passing entries in our account just simply debit purchase account and credit party account.
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