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jitesh (Querist)
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08 December 2010 Dear all

My query is on the following circumtances:

A real estate company is taking credit of VAT input

As the project is under construction so VAT output does not arises.

further more the company has not taken vat registration no as its say that vat liability does not arises as now and it will take regd later.

My query is as the company has not taken vat regd. , can it shows vat input entries in books,
further whether it has to file return or not.

Please i need a expert advice as this is a very serious matter.

Regards
Jitesh Tibrewal

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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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.

jitesh

jitesh (Querist)
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08 December 2010 Thanks for yor esteemed time.

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