Purchases from Unregistered dealers

Dear Subramanya,

you can not take the vat set-off for the goods purchased from unregistered dealer. You have to show it sepratly in your vat return for the purchases from unregistered dealer.

you can take credit only on tax invoice which is only a register dealer so' you can not take credit from un register delar 

I am of th opinion (based on Assam VAT) that no ITC can be taken agaisnt tax paid to unregistered dealers. Rather unregistered Dealers are not authorised to collect any VAT/CST on sales made by them.

Further more if the purchase is made for use in business (other than sale or use in manufacturing for sale etc.) the dealer may also be liable to pay purchase tax.

If there is a purchase from unregisterd dealer and tax on purchase has been paid by challan to Sales Tax Department. What is the treatment of this tax payment regarding ITC and VAT payable in annual return....?