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Vat on purchase from unregistered dealer in orrissa

12 July 2012

Please let me know 'if a registered dealer purchases from an unregistered dealer in orrissa, what is the effect of VAT on that? Is purchaser is lible to pay any vat for making purchase from an unregistered dealer in the same state i.e., in orrissa state? Kindly provide the information.

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6 Replies

Pankaj Gupta (CA final & M.Com Student) (3358 Points)
Replied 12 July 2012

If a registered dealer purchases from unregistered dealer than he will have to pay vat from his own pocket. Means he cannot book the credit of vat paid by him while making purchases. It dosn't matter whether the sale is inter state or intra state.

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Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 12 July 2012

Yes the views of Pankaj are correct.

saroj kumar jain (CA) (72 Points)
Replied 12 July 2012

Thanks. It means the purchaser is not able to take vat credit. But he did not liable to pay any tax on that. Please clarify as per Orrissa VAT rules.

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 12 July 2012

Purchase tax is liable to be paid for unregistered purchase under Orissa Vat Rules.

Pankaj Gupta (CA final & M.Com Student) (3358 Points)
Replied 12 July 2012

Purchaser will have to pay vat from his own pocket for which he cannot book credit. The ultimate effect will be that.. The cost of purchase would increase. This rule is as per the white paper which is applicable all over india