Reena Parekh (4 Points)
18 February 2017Hello ,
I want to know what is the reason to pay tax of 1% in vat under other reason, when material purchased from intra state dealer and that particular material sold to interstate dealer. What will be effect whem intra state purchase is from unregistered dealer.
CA Shree Jain
(Chartered Accountant)
(1572 Points)
Replied 18 February 2017
Sec 9 of the GVAT Act prescribed provisions about liability of PT. If a registered dealer purchase any taxable goods form URD than provision of sec 9 apply, while Sec 11(1)(a)(ii) provides input tax credit of PT paid. In general, if goods so purchased from URD is in turn sale, resale or used in mfg. by you and output tax payable on it, than no PT is payable by challan in cash, but in return one hand you have to disclose URD purchase and its PT liabilites and another hand the same amount of PT you will get credit. Ultimately, you have not to pay PT and also you will not get any excess credit of PT. Input credit is admissible of PT is subject to the provisions of Sec.11.
Reena Parekh
(4 Points)
Replied 18 February 2017
Hello , I want to know what is the reason to pay tax of 1% in vat under other reason, when material purchased from intra state dealer and that particular material sold to interstate dealer. What will be effect whem intra state purchase is from REGISTERED dealer.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
CAclubindia
