what is the diffrence of purchase EXEMPT & purchase URD
RAJENDRA SHANKAR POLEKAR (Accountant) (32 Points)
20 November 2013what is the diffrence of purchase EXEMPT & purchase URD
Shivani Mittal
(Practice)
(425 Points)
Replied 21 November 2013
Purchase URD (URD - unregistered dealer) : It means that the seller from whom goods are being purchased is not a registered dealer i.e not registered under the respective state VAT Act irrespective of the commodity being covered or not covered by the resp. act. Eg: Dealers taking the exemption of Rs. 20 lacs. So for the purchasing dealer it is purchases made from urd. In this case the seller does not have a TIN as he is not registered.
Purchase Exempt - It means that the seller is registered under the respective state act but the commidities which are being sold are specifically exempted from levy of VAT i.e though covered in the act but still exempted from levy of rate of tax. Eg. plain fabric. So for the purchaser it is exempted purchase. In This case the seller has TIN.
Live Course on Invoice Management System (IMS) - 2nd Batch(With Recording)
CAclubindia
