Man (Accountant) (77 Points)
30 April 2013We are purchasing goods from small dealer he is not crossing the threshold limit of 500000/- hence not registered for vat.
We are taking a declaration from him as a proof for non applicability of tax.
Is it sufficient?
Or still we will have to pay vat on such purchases?
VIKAS.A
(SOMETHING IS BETTER THAN NOTHING)
(1095 Points)
Replied 30 April 2013
Purchases from unregistered dealer is not eligible for input tax credit though he is within treshhold limit, '
correct me if i am wrong,
thank u.
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 30 April 2013
You have to charge vat while buying from an unregistered dealer and pay to the govt u/s6(1) of Mahavat Act. This tax collected on purchases can be claimed back as input tax credit when such goods sre sold....mjk
Shivani
(Learner)
(1881 Points)
Replied 01 May 2013
Krishnamurthy Sir
Is what you suggested also applicable in Punjab.
Can you please quote the relevant section of PVAT 2005?
Thanks
Shivani
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 01 May 2013
Ms Shivani,
As per PVAT Act 2005 also under Sec 20 a registered delaer has to collect vat at sheduled rates while buying from unregistered persons.Here also input tax credit is allowed, with restrictions....mjk
P. Singh
(Partner (Legal Matters))
(62 Points)
Replied 16 May 2013
Please tell if such law is applicable to deposit tax on purchases from uinregistered dealers.....
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 16 May 2013
Yes,you have collect tax on purchases from unreegistered dealers ad deposit it to the govt through returns....mjk
surendrakumar
(Article trainee)
(54 Points)
Replied 05 December 2013
As Per Sec 3(2) of KVAT Act,2003 The Dealer Who is purchasing goods from the Unregistered dealer have to pay vat on those purchases
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