ANDHRA PRADESH VAT ACT.

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CA bhargava

1559 Points Posted on 13 October 2010

A VAT SUPPLIER, ISSUED A TAX INVOICE APPENDING THE TIN REGISTRATION NUMBER ISSUED BY THE COMMERCIAL TAX DEPARTMENT, AT THE TIME OF PURCHASE OF THE GOODS.

THE PURCHASER OF THE GOODS CLAIMED THE INPUT TAX CREDIT BASED ON THE TAX INVOICE RAISED BY THE SELLER.

THE PAYMENT FOR THE ABOVE PURCHASE ALSO MADE THROUGH BANK TRANSACTION.

LATER IT PROVED THAT THE SELLER HAS NOT REGISTERED ON THE DATE OF SALE. BUT REGISTERED AFTER THE TRANSACTION DATE.

THE VAT AUTHORITIES DISALLOWED THE INPUT TAX CLAIMED BY THE PURCHASER STATING THAT THE PURCHASE TRANSACTION IS FROM UN-REGISTERED DEALER.

IS THERE ANY FAVORABLE CASES IN FAVOR OF PURCHASER.

PLEASE SUGGEST ME WITH SUPPORTINGS...

THANKS IN ADVANCE...

Replies (2)

sriram

PARTNER

26 Points Posted on 14 October 2010

Dear Sir

Though there is no registration on the sale date. Kidnly confirm with the supplier the sales is reported in the montly return . If it so you can show the proof and claim the input.

thanks

sriram

chandra shaker

TAX PRACTITIONER

62 Points Posted on 17 October 2010

Here in your case the effected purchases are from unregistered dealer so, you are not eligible for claiming the input tax credit on the said purchases and the said purchases shall be treated as non-creditable purchases and on sales of the said purchases you need to pay the taxes as applicable .

In case the supplier from whom you purchased the goods has collected the taxes unofficially then you can file a suit against him for excess collection in form of taxes being unregistered dealer and you may demand for return of the overcollection made from you .

In vat there is a multiple taxation ,on every point of sales you have to pay the applicable taxes to the respective CTO circles, as and when you got registered on the rolls effecting from the date of obtaining registration vice versa you are eligible to claim the taxes paid against the purchases made from local registered dealer i.e with in the jurisdiction of the respective state ,restricted to some purchases which are ineligible such as some sensitive /capital /not related to your subsequent sales of goods. etc

G.S.CHANDRA SHAKER
TAX PRACTITIONER_STP
Mobile.No.+91-9395323341/9951038001
Email.Id.chandrashaker7 @ gmail.com
chandrashakerstp @ gmail.com