What if purchaser shows dummy bills

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Hardik Raval (Querist)
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31 October 2012 I want to know what happens if purchaser shows dummy bills and pays vat on it?

For what amount he is liable? also tell me penalty for the same?

V K Bajaj

V K Bajaj (Expert)
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01 November 2012 Mr Hardik!

Your question is incomplete one so do not expect correct answer. However, may expect on amending your question.

VAT is state subject and you missed to mention as VAT of which state.

Still the concept is that if Officer establish that purchase bills are dummy which virtually means SALES are also dummy. And when purchases and sales both are dummy then BOOKS OF ACCOUNTS stands rejected.