Purchase tax in himachal pradesh

   Mr. Siddharth,

   As per Sec11 ,sub sec 7(c) of HP VAT Act  when purchases are made from anunregistered dealer within the state,the tax paid on such purchases can not be claimed as input tax credit......MJK..

Mr. MJK,

Reference to your comment I would like to bring in your kind attention the third proviso of Section 21 of the H.P. VAT Rule, 2005, which says ……… “ Provided further that the purchase tax paid under section 6 of the Act shall be considered as input tax credit for the purpose of subsequent sale in the hands of same person.”

Purchase tax is charged at first stage & the sellers are always the unregistered grower. Section 11 refered for second stage VAT Input Tax and not for first stage Purchased Input Tax.

Please Clarify the same.

Thanks.

thanks .