Purchase from unregistered dealer, VAT + CST

[guna ch]

Dear sir/s

Could you please advice me , if the goods are purchsed from unregistered dealer ,does the buyer has to pay the VAT if he is a registered dealer. if he should pay how this amount should be treated either inputVAT or OutputVAT, Can we adjust before paying the amount .

Kindly suggest me what are the provisons IF GOODS ARE PURCHASED FROM UNREGISTERED DEALER

Posts / Replies

[SURESH ASTEKAR]

In terms of Section 17(5) (b) of the AP VAT Act, every dealer registered or liable to be registered under the Central Sales Tax Act 1956, or any dealer making purchases or sales in the course of inter-state trade or commerce or dispatches any goods to a place outside the State otherwise than by way of sale, is liable to be registered under the APVAT Act itself.  Further a dealer making interstate sale is liable to get himself registered under the CST Act also.  Therefore, the question of a dealer in AP purchasing goods from an unregistered dealer in Telangana, does not arise at all. 

[ganeshan kalyani]

The tax which is liable to pay u/s 4(4) of AP VAT Act, by a registered dealer in Telangana for purchases from an unregistered dealer in Telangana. The tax so paid, can that be claimed as set off.

[Madhukar N Hiregange]

You may need to examine the local VAT law. In Karnataka VAT the buyer of goods from URD has to pay the VAT as purchase tax. As and when he resell or as in your case consumes the same, he is eligible for ITC. If not paid then interest + mandatory penalty would be the consequence.  

[ganeshan kalyani]

In Maharashtra VAT Act the section 53 talks about Retention of Vat set off for goods dispatched outside the State otherwise than by way of sale in the course of inter-State trade. The said section i could not come across The Andhra Pradesh VAT Act, 2005. Should need to throw some light if it has any provision in the said act.

[ganeshan kalyani]

A dealer purchases from unregistered dealer at Telangana and paid purchase tax & for manufacturing he send it his own unit at Andhara Pradesh as stock transfer. After manufacturing he sold it in Andhra pradesh and paid vat. I would request to clarify whether dealer in Telanaga who purchased from unregistered dealer and paid purchase tax, can claim the set off of the tax paid toward purchase tax.

[ganeshan kalyani]

As per section 4(4)(iii) Purchase tax payable. The rate of tax is given in Act is 4 percent . Is this the current rate or it is change to 5 percent .

[Abhinav Arora]

Dear Experts

I was reading the above discussion and I am now wondering if similar provisions are there in Maharastra VAT Act. Please enlighten

[Narendra Kumar T]

Under Karnatka VAT Act, If goods purchased from Unregistered delaer and If goods not falled under Sechedule 1 Goods ( Exempted Goods), then the buyer need to pay VAT on URD Purchases. Further, VAT Input is available subject to payment of VAT and Input eligibility of such goods. However, its subject Local VAT Act.

[ravi thakkar]

if unregistered dealer sale goods to interest, to whom tax is applicable

and if applicable to purchaser so, it is liable to VAT or CST

[ravi thakkar]

if unregistered dealer sale goods in Interstate, to whom tax is applicable

and if applicable to purchaser, so it is liable for VAT or CST

[OUSEPH PAPPARIL VARKEY]

Sir,

could you please advise whether i have to pay purchase tax for buying arecanut slices from an unregistred person

for export purpose?. If so do we can claim it or adjust with input tax.

Yours faithfully

[Sumeet Singhal]

Dear sir

I had started new business for Agri product where we are getting very good response all across the country

but due to un organised sector we are not able to understand how to purchase the goods for more then 20000 at a time to show on our books as you know on Agri business one have any bank account or PAN card every vendor ask money on cash what so ever amount is but when we are selling the goods all the company want on Bill

if we are doing URD Purchase it not easy for us to show purchase for long volume kindly guide us for the same

sumeet

[konni Vasudeva Rao]

Dear Sir,

1. purchases from under registered dealers it should be shown in: non-creditable purchases

2. If the same goods will be sold to Local Registered Dealers Tax will be applicable VAT

3. If the Registered Dealer having INPUT VAT CREDIT IN THAT PARTICULAR MONTH YOU MAY ADJUST from PREVIOUS MONTH CREDIT INPUT

[BRAJESH KUMAR]

DEAR SIR/MADAM,

I AM EXPORTER. I PURCHASED PRODUCT FROM JHARKHAND FROM UNREGISTERED BUYER. MY COMPANY IS REGISTERED IN WEST BENGAL.

HOW TO MAKE ROAD PERMIT AND IF I PURCHASED FROM OTHER STATE.

PLEASE ADVISE ME

THANKS

BRAJESH

[Pradeep Kumar]

You can generate way bill through online. It is available in the WB Commercial taxes website. First we have to collect all details like name of material, quantity, value, supplier details, transporters details and then generate way bill. We can seek Local commercial tax practitioners' help for this.

[Mahesh Chauhan]

Dear Sir,

I am a registered dealer in U.P. and want to make a purchase from an unregistered dealer in Delhi. Please advice me, how to make a purchase. Its a item to be sold further by paying CST/VAT.

Thanks.

[Ganeshan Kalyani]

Sir, without CST registration a dealer is not allowed to do interstate supply. The supplier is supposed to get register before the transaction is taking place. Sir, levying , collecting tax and paying it to Exchequer is the responsibility of the supplier.Thanks

[YAGAY AND SUN]

Goods can be procured from unregistered dealers even in ISS transactions. If goods are further being disposed off on payment of VAT/CST, then no purchase tax would be applicable.