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Can i issue retail invoice

Lalit (Sr. Systems Analyst) (26 Points)

20 March 2013

I am a dealer of Pesticides and have TIN Number from Orissa (Odisha) state. Recently I decided to expand my business and deal with tractor spare parts. I am yet to apply for amendmends for VAT category. I have already purchased some spare parts from a out of state supplier without any bill/invoice. How can I sell those spare parts with bill? I have heard that, it is possible to do so by depositing/paying tax on the current stock (that I have purchased without a proper bill/invoice).

Kindly guide me in this and suggest solutions.

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4 Replies

(Guest)

DEAR LALIT,

You can not sell tractor parts with bill unless amendment in your RC regarding ''inclusion of tractor parts'' is made(since it will be the case of unregistered dealer regarding tractor parts only).
Moreover you have made central purchase on which tax credit is not available.
Also you have purchased without bill which further state that no benefit is available for minimum tax rate in relation to central purchase.
Further you are not registered even now for such item for sell.

Keeping in view from above, for making sales of tractor parts you have to show that :

You have purchased these parts along with bills( you have no proof of purchasing these parts in this case).
Secondly no tax credit /benefit will be permissible even though you will amend RC now. (since such purchase is not liable for input tax credit corresponding to such sales).
Your view that tax on closing stock will make you liable for retail invoice has no relevance regarding to the DVAT ACT, 2005.

(ACA ASHISH GUPTA)

(CONSELOR)

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MJ Krishnamurthy (ACCT(Retd)) (7197 Points)
Replied 20 March 2013

Mr Lalit,

Whatever is effect of all this ,you have auto parts with you and want to sell them.The way open now is this :

As you do not have an invoice to show that they are of interstate purchase, you will be liable for payment of purchase tax u/s 12 of Odisha VAT Act. A letter may be filed before your vat officer intimating him that you have started business in auto parts also w.e.f. an immediate date.On the same date you raise a purchase invoice as purchased locally from somebody and pay tax on thta at the proper rates. Now your stock is regularised.Hereafter, you can sell the motor parts through retail invoices and collect VAT on them.Whenyou collect vat on the saleof auto parts on which you have already paid purchase tax ,they can be mutually adjusted.......mjk

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Jishnu Surendran (Finance Manager) (312 Points)
Replied 22 March 2013

Dear All,

I am not an expert but don't you think that inter - state purchase without invoice will amount to smuggling and attract penal consequences ?

MJ Krishnamurthy (ACCT(Retd)) (7197 Points)
Replied 22 March 2013

It is not termed as smuggling,it is only a movement of goods without valid documents. If caught during such movement VAT authorities can penalise the owner for evading tax and also the transporter,as per the VAT law of respective state where they are found committing an offence.......mjk