27 April 2010
Purchase tax on unregistered dealer nothing but penalty to purchaser. It means, whatever payment for purchase tax, dealer can not take credit. If any dealer purchase the goods from unregistered dealer, he has to pay tax as applicable rate to that commodity as per VAT tariff. We can say tax paid on purchase as input credit, but in this we can not take credit. So, it's like penalty to purchasing dealer to avoid purchase from such transactions.
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