Purchase from Unregistered dealer

This query is : Resolved

apurva (Querist)
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21 August 2007 I have purchased stock as an individual capacity from bank as disposal of stock which are seized by them.Presently,I am working in firm as an employee which are engaged in trading of imported goods. Turnover of firm is below 1 Crocre.

I am not registered dealer under cst/vat. Now I want to know, can I sale these goods to my firm? Weather firm is liable to pay purchase tax(VAT), excise duty on these goods?

If yes, then firm is eligible to claim input tax credit of excise & purchase tax?

What are the tax implication for sale of these goods by firm?

CA Mani

CA Mani (Expert)
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22 August 2007 You/ Your company need not pay excise duty as it would have been paid at the time of clearing from the factory.

Purchase tax means - Is it VAT/ CST?

To charge VAT/ CST, You should be a registered dealer as per the respective Acts.

If your firm pays VAT - They can claim Credit, Provided their output is also subject to VAT.

I hope this would clarify your doubt.

If further query, Plz post in this msg and keep the status as open.

Regards,

Mani
FCA