Duty to ascertain about the dealer

This query is : Resolved

Puneeit (Querist)
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18 December 2007 Is it the duty of the buying dealer to ascertain that the vendor is a registered dealer and he has paid the duty collected?
If yes please give me the relevant extracts from law?

Puneeit

Puneeit (Querist)
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19 December 2007 This is with reference to VAT

KAUSTUBH M JOSHI

KAUSTUBH M JOSHI (Expert)
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19 December 2007 If you have purchased goods & dealer has collected the tax through tax invoice it will not be your responsibility to check as above. Only important is collection of tax in invoice, registration no on the invoice & its effective date

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CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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21 December 2007 Yes, it is the duty of the buying dealer to ascertain that the vendor is a registered dealer, if he wants to

01. Avail the Input Credit.
02. Want to save purchase tax
That is why, it has been made compulsory for the dealers to display their registration certificate as place of buisiness.