22 July 2013
Please tell us what is the ruling for Purchases from Unregistered Dealer and Sales to Registered Dealer in Tamil Nadu. We have purchased fr URD for Rs.1 lacs and Sales to RD for for Rs.1.25 lacs @ the rate of VAT 14.5%. What is our tax liability?
22 July 2013
TNVAT Section 12 (1a) deals with levy of purchase tax for the purchases made from unregistered dealers for sale.
In your case, you have to pay 14.5% on the purchase value of Rs.1 lac i.e 14500/- and show it in your Form I return right side column 1 and pay total tax on sale value Rs.1.25 lacs plus purchase tax of Rs.14500/- this month. In the next month Rs.14500/- paid by you will be carried forward in the first column sl.no.1 left side of Form I and you can adjust the same in that month just like ITC.
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