canadeem (chartered accountant) (40 Points)
01 April 2010Can anyone tell me about the concept of purchase tax........If a company purchases vatable goods from unregistered dealer(who is not required to get registered under vat act because their turnover is very less),will it be compulsory to pay purchase tax...if yes on which amount....transaction amount or market value????????????
subramanya
(Professional)
(907 Points)
Replied 01 April 2010
| Originally posted by : canadeem | ||
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Can anyone tell me about the concept of purchase tax........If a company purchases vatable goods from unregistered dealer(who is not required to get registered under vat act because their turnover is very less),will it be compulsory to pay purchase tax...if yes on which amount....transaction amount or market value???????????? |
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Dear Sir,
It differs from State to state.
Incase of Karnataka, when u purchase goods from an Unregistered dealer, you have to pay purchase tax on transaction amount and to the extent of goods sold during the return period you can claim itc on such purchases.
Also unregistered dealer purchases will become part of Sales turnover.
Subramanya
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