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Vat

neha gupta (Staff) (63 Points)

02 August 2014

A dealer purchased a good under wbvat and pay the vat on goods purchase amounted to Rs 3 Lacs, but at that time he is not registered dealer under vat act, is he liable to claim credit for that purchase, if he sale the same goods when he became a registered dealer under the vat act for amount of Rs 4 Lacs

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CA Manoj Gupta (Chartered Accountant) (89 Points)
Replied 02 August 2014

As per vat rule one can claim input vat credit if he is registered dealer. In your question at the time of purchase purchaser is not registered dealer it means he can not claim input vat credit.

2nd logic is that on vat tax invoice there must be TIN No. on the invoice but if purchaser is not registered it means he has no TIN No. so he can also not claim such input tax credit.

But if He became get proof from the department that the registration has retrospective effective date then he can as per my opinion.