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Purchases from Unregistered dealers

subramanya (Professional) (907 Points)

20 June 2008

How to treat purchases from Unregistered dealers

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4 Replies

biren thakkar (accounts manager) (231 Points)
Replied 21 June 2008

Dear Subramanya,

you can not take the vat set-off for the goods purchased from unregistered dealer. You have to show it sepratly in your vat return for the purchases from unregistered dealer.

Joshi Radhesh K. ( student of pcc) (44 Points)
Replied 30 September 2008

you can take credit only on tax invoice which is only a register dealer so' you can not take credit from un register delar

CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 01 October 2008

I am of th opinion (based on Assam VAT) that no ITC can be taken agaisnt tax paid to unregistered dealers. Rather unregistered Dealers are not authorised to collect any VAT/CST on sales made by them.

Further more if the purchase is made for use in business (other than sale or use in manufacturing for sale etc.) the dealer may also be liable to pay purchase tax.

karan garg (Student CA Final ) (100 Points)
Replied 19 May 2015

If there is a purchase from unregisterd dealer and tax on purchase has been paid by challan to Sales Tax Department. What is the treatment of this tax payment regarding ITC and VAT payable in annual return....?