Goods Purchased From Exempt Units.
This query is : Resolved
14 December 2007
Is it only for the manufacturers to sell the goods at exempt rates(due to their location) or can the reseller also sell the exempted goods at the exempt rates in tax zone???
CA. O.P. Agarwalla
(Expert)
14 December 2007
Which State?
In Assam- The exempted Industires are authorised to issue Tax Invoices. Exempted Industries deposits one percnt of VAT Payable and keep 99% with them.
Purchasing dealer gets full ITC on VAT charged against Tax Invoices by such exempted manufacturing unit. On resale they are liable for VAT at applicable rate.
However, one restrition has been imposed recently, that reseller of such goods will be debarred from ITC against sales made in course of inter state trade & commerce.
In Assam- The exempted Industires are authorised to issue Tax Invoices. Exempted Industries deposits one percnt of VAT Payable and keep 99% with them.
Purchasing dealer gets full ITC on VAT charged against Tax Invoices by such exempted manufacturing unit. On resale they are liable for VAT at applicable rate.
However, one restrition has been imposed recently, that reseller of such goods will be debarred from ITC against sales made in course of inter state trade & commerce.
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