INPUT TAX CREDIT

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2011 Dear Sir,

We have purchased mterial(agricultural item as saunf (fennel seeds)) from a former (unregistered dealer) in u.p. can we get input tax credit on the above purchase.

Thanks in advance.

B R Ramesh

B R Ramesh (Expert)
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28 May 2011 Hi

iF THE MATERIAL IS PURCHASED FROM unREGISTERED DEALER YOU SHOULD PAY THE VAT & FILE THE RETURN.

SAME CAN BE CLAIMED AS INPUT WHEN THE MATERIAL IS SOLD OR CONSUMED.

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2011 B.R.RAMESH Sir,
Thanks for helping me.

If we purchase material(taxable 4+1%) from unregistered dealer and neither we deposit the VAT nor Claim the same from the department. Is it right ?.

Beacause in an article from icai we have read that input credit is not allowed on purchase from unregistered dealer.

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B R Ramesh

B R Ramesh (Expert)
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31 May 2011 Hi

1st point is correct

but in the second point input tax CREDIT is allowed only WHEN YOU PURCHASED FROM URD & DEPOSITED THE TAX IN DEPT.

THE SAME CAN BE CLAIMED OR ADJUSTED WHEN THE PRODUCR IS SOLD OR CONSUMED .

Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2011 B.R.Ramesh Sir,

Actually I am asking that if it is not compulsory (as input credit is not allowed) to deposit the VAT on purchase from unregistered dealer then why we bother about depositing and claiming the VAT on the same.

Thanks n regards

Sanjeev Kumar

Sanjeev Kumar (Expert)
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02 June 2011 first- for this all exercise please check whether this said item is liable to pay VAT - PT (Purchase tax) at all because its agriculture product and many of such product is exempt from Tax

Querist : Anonymous

Querist : Anonymous (Querist)

02 June 2011 Sanjeev Ji

It is 4% taxable item in U.P.

Sanjeev Kumar

Sanjeev Kumar (Expert)
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02 June 2011 Sorry friend- if u purchased a taxable goods from un-registered person then u are liable to pay purchase tax under UP VAT law being a dealer

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