Purchases from Unregistered dealer in Hyderabad., VAT + CST

[Raju Kumawat]

A Registered dealer has made purchases from Unregistered dealer in Hyderabad in the FY 2014-15 and didn't disclose aforesaid purchases in VAT returns and didn't pay any taxes on those said purchases.

Is the Registered dealer liable to pay Taxes on said purchases?

If yes, what is the rate and when could claim input credit of the same?

Regards

Posts / Replies

[YAGAY AND SUN]

Dear Raju,

If such goods are disposed off other than by way of sale in the Telangana State, then, you would have to pay the purchase tax at appropriate rate either 5% or 14.50% depending on the classification of such goods. Not showing the goods in the VAT return is an offense.

Regards,

YAGAY and SUN

(Management, Business & Indirect Tax Consultants)