CA J.Alamelu lakshmi (Chartered Accountant) (852 Points)
25 February 2011
Lalit Kumar
(Vice President )
(2213 Points)
Replied 25 February 2011
if a dealer cannot and is not supposed to collect tax cos of the fact that he falls under the exemption given under VAT (<10Lacs) turnover, he cannot claim the Input tax Credit (ITC means on purchases of Raw materials watever tax he pays he cannot claim tat).. The second point which u asked is totally diff to ITC.. Suppose while making a sale the dealer collects tax(VAT), watever amount he has collected he has to give it to the Govt immdeiately by filing a return.
sundaresan
(partner)
(288 Points)
Replied 28 February 2011
I agree to the person who said. In mean while if you u r having any purchase form otherstate (Register dealer) you can avail ITC if your turnover exceed Rs. 5 Lakhs.