Dear Experts,
I want to know the consequences of Purchases made from Unregistered dealer by a Registered Dealer / Company of following.
1. Consumables
2. Assets
3. Raw Material
Thanks & Regards
Sudheer P.
Sudheer Patibandla (Accountant) (248 Points)
04 November 2013Dear Experts,
I want to know the consequences of Purchases made from Unregistered dealer by a Registered Dealer / Company of following.
1. Consumables
2. Assets
3. Raw Material
Thanks & Regards
Sudheer P.
RAJU
(LEARNER)
(1089 Points)
Replied 05 November 2013
Laws in all States are not similar. As far as Karnataka is concerned, a dealer is required to discharge the VAT at the applicable rate on any purchase of taxable goods from within the State. However, the dealer would be eligible to avail the credit on eligible goods.
Subramanya
(Tax Consultant)
(523 Points)
Replied 14 November 2013
DDDDDD
(.)
(176 Points)
Replied 15 November 2013
Dear Sudheer,
As per TNVAT, if an dealer is purchasing goods from a unregistered dealer then he is supposed to pay purchase tax at the time of purchase irrespective of the fact whether it is a consumable or raw material or asset.
Subsequently the dealer can avail input credit on that asset provided that the asset is covered under First schedule. If the item is not mentioned in the 1st schedule then the company cannot avail input credit.