Urd purchases

We are purchasing goods from small dealer he is not crossing the threshold limit of 500000/- hence not registered for vat.

We are taking a declaration from him as a proof for non applicability of tax.

Is it sufficient?

Or still we will have to pay vat on such purchases?
 

Replies (8)

Purchases from unregistered dealer is not eligible for input tax credit though he is within treshhold limit, '

correct me if i am wrong,

thank u.

   You have to charge vat while buying from an unregistered dealer and pay to the govt u/s6(1) of Mahavat Act. This tax collected on purchases can be claimed back as input tax credit when such goods sre sold....mjk

Krishnamurthy Sir

Is what  you suggested also applicable in Punjab.

Can you please quote the relevant section of PVAT 2005?

Thanks

Shivani

shivaniadream @ gmail.com

   Ms Shivani,

  As per PVAT Act 2005 also under Sec 20 a registered delaer has to collect vat at sheduled rates while buying from unregistered persons.Here also input tax credit is allowed, with restrictions....mjk

Thanks Mr. MJ Krishnamurthy

Krishnamurthy

Read more at: /forum/urd-purchases-247915.asp
Krishnamurthy

Read more at: /forum/urd-purchases-247915.asp

Please tell if such law is applicable to deposit tax on purchases from uinregistered dealers.....

Yes,you have collect tax on purchases from unreegistered dealers ad deposit it  to the govt through returns....mjk

As Per Sec 3(2) of KVAT Act,2003 The Dealer Who is purchasing goods from the Unregistered dealer have to pay vat on those purchases 

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