Vat payable in case of purchase from unregistered dealer

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Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2012 is VAT liable to pay in case of purchase from
unregistered dealer if i am a registered dealer and
1. if i sell that goods on VAT basis or
2. if i sell that goods on CST basis

and if i deposit VAT on purchase from unregistered dealer then can i claim for input credit of that VAT in both above cases.

CA Sumat Singhal

CA Sumat Singhal (Expert)
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17 February 2012 A. Generally, input tax credit will be eligible on all goods purchased for resale, raw material and packing materials for use in the manufacture of goods and even capital goods.
Only goods purchased from VAT registered dealers in the State will be eligible for input tax credit

CA Sumat Singhal

CA Sumat Singhal (Expert)
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17 February 2012 so accordingly no credit for input credit will be available in both cases above.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2012 Dear Sir,

Thanks for answer. Can you give reference of rule or something regarding your answer actually as per our sales tax lawyer input credit is available.
I am not debating only want to clarify the matter. Kindly solve my query.