Urd purchases karnataka
This query is : Resolved
25 June 2012
can anybody tell me which commodities can be shown as URD purchases in VAT act karnataka
26 June 2012
URD purchase means -commodities purchased from unregistered dealer in karnataka. There is no specific products for URD purchases. All the scheduled commodities can be purchased both from URD and Registered dealer. The only thing is, if you purchase commodity from registered dealer, you can avail ITC (Input tax credit). The dealers with a turnover below 2 lakhs are called URD.
rengaraj r.k
rengaraj r.k
26 June 2012
thank you sir, but why URD purchase voucher should be below 15,000/-, there is no rule of fixed amount for urd purchase, than what is the use of urd purchase voucher below 15,000/-
02 August 2025
Great question about **URD purchases under Karnataka VAT**!
---
### Key Points on URD Purchases in Karnataka:
1. **What is URD Purchase?**
* URD means **Unregistered Dealer** — a dealer not registered under the Karnataka VAT Act (usually having turnover below ₹2 lakhs).
* URD purchases are goods bought from such unregistered dealers.
2. **Are there specific commodities that can be URD purchases?**
* **No.** There is no fixed list of commodities for URD purchases.
* Any scheduled commodity can be purchased from either a registered dealer or an unregistered dealer.
3. **Why URD Purchase vouchers are often restricted to below ₹15,000?**
* There is **no strict legal limit** on the amount for URD purchase vouchers in Karnataka VAT Act.
* However, practically and from audit perspective, **URD purchase vouchers are often kept below ₹15,000** to avoid scrutiny and easier compliance.
* Larger purchases from URD might attract more scrutiny from tax authorities.
4. **Input Tax Credit (ITC) on URD Purchases:**
* When you buy from an unregistered dealer, you usually **pay VAT under reverse charge** and can **claim ITC** on that VAT.
* For purchases from registered dealers, you get VAT invoices and can directly claim ITC.
---
### Summary Table:
| Aspect | Details |
| --------------------- | --------------------------------------------------------------- |
| Definition of URD | Unregistered dealer, turnover below ₹2 lakhs |
| Commodities under URD | Any scheduled commodities |
| Voucher amount limit | No fixed legal limit, ₹15,000 often used as a practical limit |
| ITC eligibility | VAT paid under reverse charge on URD purchases eligible for ITC |
---
If you want, I can help you draft a sample URD purchase voucher or explain how to handle URD purchases in your VAT return for Karnataka. Would that help?
---
### Key Points on URD Purchases in Karnataka:
1. **What is URD Purchase?**
* URD means **Unregistered Dealer** — a dealer not registered under the Karnataka VAT Act (usually having turnover below ₹2 lakhs).
* URD purchases are goods bought from such unregistered dealers.
2. **Are there specific commodities that can be URD purchases?**
* **No.** There is no fixed list of commodities for URD purchases.
* Any scheduled commodity can be purchased from either a registered dealer or an unregistered dealer.
3. **Why URD Purchase vouchers are often restricted to below ₹15,000?**
* There is **no strict legal limit** on the amount for URD purchase vouchers in Karnataka VAT Act.
* However, practically and from audit perspective, **URD purchase vouchers are often kept below ₹15,000** to avoid scrutiny and easier compliance.
* Larger purchases from URD might attract more scrutiny from tax authorities.
4. **Input Tax Credit (ITC) on URD Purchases:**
* When you buy from an unregistered dealer, you usually **pay VAT under reverse charge** and can **claim ITC** on that VAT.
* For purchases from registered dealers, you get VAT invoices and can directly claim ITC.
---
### Summary Table:
| Aspect | Details |
| --------------------- | --------------------------------------------------------------- |
| Definition of URD | Unregistered dealer, turnover below ₹2 lakhs |
| Commodities under URD | Any scheduled commodities |
| Voucher amount limit | No fixed legal limit, ₹15,000 often used as a practical limit |
| ITC eligibility | VAT paid under reverse charge on URD purchases eligible for ITC |
---
If you want, I can help you draft a sample URD purchase voucher or explain how to handle URD purchases in your VAT return for Karnataka. Would that help?
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