Regarding vat input tax

If purchase from unregd dealer/farmer, there is no question of tax component.  X is responsible for VAT 5%

Buyer has to pay taxon URD purchases. He can take input credit of such payment in subsequent month.

If a buyer purchases goods from Unregistered Dealer there is no question of VAT on it bcoz buyer hasn't pay any VAT ,so thereby no question of VAT Input.In Qtrly return you have to deduct purchases from Unregistered dealers from Gross Purchase and it  will be treated as Exempted Purchases.

Dear Prakash,

Input Tax credit can be claimed only when a registered dealer purchases goods from another registered dealer and the selling dealer must have indicated the tax collected in the sale invoice. The original invoice is instrumental for claiming this credit.

Now, when the purchasing dealer buys from an unregistered dealer, there is no question of any input tax credit since the seller is not authorised to issue a tax invoice. Also, the buying dealer is not required to pay any tax on its purchase, if the goods suffer tax at the point of sale by the registered dealer.

Purchase tax is payable by the buying dealer when the goods purchased from unregistered dealer is used for manufacture of tax-exempt goods or for branch transfer, where no tax on sale is leviable.

can not claim tax credit if purchase from unregistered dealer in any case.

I partly agree with Mr.Ravi Shankar.

Some "Goods" attract Purchase Tax in some states .

If the above material falls in that category goods it attracts Purchase Tax.

kkm

I agree with KKM. Wherever purchase tax is applicable, a regd. dealer (Purchaser) will pay tax on purchases and then he'll get input credit of tax paid on purchase from its output tax which is payable on sales.

Hi friends,

Please help me. I am having one doubt. Actualy I am woking for Sales tax under TNVAT Act for various clients. Among the one of the client is having business of salling of Sands, bricks, chips, steels etc. as wel as that undertake to supply to buyers place for which he is having one lorry. and for that lorry he generly spend for new tyre.

Here my question is whether he can take ITC as paid for the purchase of new tyre.

Please help...

kindly explain regarding tax exemption which can be claimed from urd purchases of bran (taxable @ 5.5%) in case of rice merchant who is dealing in both rice and bran