Hello All,
I am working in a manufacturing company, we have recently purchased some material from an Unregistered Dealer. He is giving us the bill of his shop name & asking for cheque to be made in his personal name.
The material will be capitalized in our assets.
Kindly Suggest me which kind of liablity we have to bear if we do above transaction.
Should we have to pay Tax on the above purchase, can we issue him a cheque in his personal name.
You can issue cheque in his name and you are not liable to pay tax as per APVAT Act 2005 and if you have any doubt you can send email or ask me on my mobile 09246527173 or email: gsupadhyay @ sify.com OR VISIT OUR WEBSITE www.apvat.info GHANSHYAM UPADHYAY ( VAT CONSULTANT) HYDERABAD A.P.
In Karnataka, there is liability on the dealer for purchase of any goods from an unregistered dealer. If a dealer purchases any goods from URD, he is required to declare the same in his returns and pay tax at applicable rate on such purchases.
The cheque can be issued in the name of the proprietor. However, you can ensure that an authorisation for payment in the name of the individual is obtained from the firm.
Regards/Dharmaraju
I am still confused friends, please suggest what is the practice in MP
CAclubindia
