Tax on purchases made from unregistered dealers

Yes, you will not able to claim set-off from your VAT liability for the tax paid on purchases from URD.

Thanks sir,

Is it necessary to pay the tax (on purchses made from unregistered dealers) the govt.  since they (URD) make the bill without mentioning the tax.

Please reply

Regards

Nagaraj

No tax is requried to paid on URD purchase.  The tax liability is automatically adjusted from teh VAt paayble by you.

Suppose you have collected VAt of Rs 1000 & you have paid VAt of Rs 500 on purchases.  There are also purchases from URD's, then thsese purchases wont be consdiered while calculating your VAT liability & you will be requreid to pay VAT of Rs. 500 only.

Dear Mr Nagraj,

                   A Unregistered Dealer (URD) can not charge Vat in his invoice.... so there no any chance to give Tax and Take Input.... only a registred dealer can Charge Vat and you can take input against your output for it

yes completely agree with sonu sir

If the question is under Tamilnadu vat act, there is a section 12 which states that the applicable vat has to be paid by separate payment and the same will be automatically adjusted in the next month return as excess.  So, whenever a query is raised, please mention the state also since each state vat rules are different.

rengaraj r.k

A Unregistered Dealer has no rights to issue invoice with VAT. Even if he collects VAT from you, he can't pay VAT amount to the Govt.

Dear Sir/Madam,

I am from Chennai, Tamilnadu.

We want to purchase scrap from Unregistered dealer and process it and sell @ 2% CST. Can we purchase the same @ 0% and pay 2% CST on sales without claiming any input vat.

If yes, please guide with the section number or referall GO.

Thanks & Regards!!!!

Dhiraj Gupta

Dear  Sir,

We have  purchases  of Lathe Machine  from Unregistarar Dealer for  the F. Yr. 2011-12. This period is not considered to  Vat  Returns,  So  know we have Considering  to  Income Returns  for Asst. Yr. 2012-13. 

Please  Replay .

Regards Dinesh 

Hi Friends,

   We have a business in Karnataka and we purchase ready made garments from Kolkata from an unregistered dealer in that state. What are the consquenses to be followed. Weather URD tax to be paid in Karnataka for purchase from Unregistered dealer outside the state?

We are VAT dealer in Karnataka.

Kindly do reply and suggest!!!

Thanking You

Hello,

My question is if someone is buying all his goods from URD then how would the reporting of Tax take place in this case.

Another point if that good is sold online without any VAT then will there be any tax liability( Sales or VAT) for the seller or he will just be liable to pay income tax.

In Tamilnadu under TNVAT Act 2006, If in a Jewellery Shop, Old Gold is purchased u/s 12 of TNVAT Act 2006, 1% purchase tax is paid in the current month. The TNVAT website automatically gives it as ITC (Input Tax Credit) c/fd for the next month. But the AO claims that for example

Old Gold Purc - 50 L (1%Tax) 50K

Payment in Current month 50 K

No Sales this month.

Next month ITC b/fd 50K

Sales - 60 L (1% Tax) 60K

To pay (after adjusting ITC 50K which is purc tax) 10 K

But AO says that purc u/s 12 is again added to your Sales Turnover as follows

Sales 60 L + u/s 12 Purc 50L = 1.10 C

Hence Input Tax Credit availed by paying purchase tax u/s 12 is adjusted for the deemed addition of Purchase turnover to Sales Turnover.

Hence ITC on purchase tax is effectively Nill.

Please comment on this strong interpretations and case laws.

Thanking you in advance

What would be the tax liability on a taxable item if it is purchased from a dealer, who does not have vat registration.

Dear Sir,

Suppose if we purchase any item from URD do we need to show that in our Vat return and pay tax on that ?????