Tax on purchases made from unregistered dealers

Page no : 2

Alok Agrawal ( SHYAM HERBAL ) (Propritor) (25 Points)
Replied 16 November 2016

Dear Sir,

If i purchased goods from unregisterd dealer and sale ( product without processing ) to other state @ 2% CST .what will be tax liablity .please clear .

thanks

regards

alok agrawal (09584100800)

email-: alokagr_400 @ yahoo.com

Upgrade to CAclubindia Pro. Subscribe Now!

Shashikumar vittal shetty (ca) (27 Points)
Replied 28 December 2016

sir,

at the time of URD purchase we have to pay TAX that means purchaser have to pay tax and as well as use the paid tax as input on which month that URD purchase utilised over all the net tax payable on URD purchase is Zero

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (4830 Points)
Replied 28 December 2016

A dealer whose turnover is below a certain threshold can be called as an unregistered dealer. Unregistered dealerscannot issue a Tax Invoice required for claiming the Input Credit.

Thus, purchases from unregistered dealers, are not entitled for input credit and have to be recorded separately.

Maha (owner) (62 Points)
Replied 30 December 2016

Hello Mr.Ramamuthy

If we purchase old items from households ( normal citizen ) and we process it and sell. For example purchase old furnitures from them as scrap and then restore and sell with VAT . In that case how the purchase has to be brought in to books as it will not have any billl maximum we can get a sign from voucher from that customer . Also for this purchase do i need to pay purchase tax as per Tamilnadu VAT ?

Regards

Maha