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Unregistered dealer purchase interstate

MAGESH (Manager Accounts) (39 Points)

27 June 2016

IF WE PURCHASE THE GOODS LOCALLY AS WELL FROM INTERESTATE AND UNABLE TO GET THE PURCHASE BILLS

SINCE THE DEALER IS UNREGISTERED DEALER

QUERY Whether we have to pay Un Registered Dealer Purchase Tax on such Local purchase and Interestate Purchase

please help

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3 Replies

Rateesh (Accountant) (95 Points)
Replied 27 June 2016

If goods are purchased from unregistered dealer then no tax is payable if such goods are used in manufacture of goods or sold as such on payment of applicable VAT/CST as the case may be.

Tax is payable if such goods are disposed off as such other than sales.

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Ajeet Singh (Service ) (190 Points)
Replied 27 June 2016

Purchase Tax leviable on purchase of goods from local unregisteted dealers if you cant submit invoices at the time of assessment tax can be demanded with interest..purchase tax is subject to state vat rules at the proportion of rates of vat applicable. You will be asked to submit details of Expenses shown as per the audited financials to assess materials component in Expenses heads.

Ajeet Singh (Service ) (190 Points)
Replied 27 June 2016

No purchase tax on purchase of materials in inter state but you may be asked to submit the WayBills, Conginment Note, Invoices even the proof of Payment to supplier.

Unable to submit it would be deemed to be treated as local purchase for purchase Tax.