08 December 2010
The general principle of law is that, only a registered dealer can avail of the benefit of Input VAT for payment of the VAT due on his output. In case, a dealer is not registered at all, he is treated as an unregistered detail and on sales made by him, the purchaser has to pay a purchase tax. The facility for availment of input credit is available only to registered dealers.
However, for further clarity, the details of relevant state laws have to be seen, but, the general principles are applicable to all the states in the Indian Union.
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