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VAT on purchase from unregistered dealer

Postby mitali.cs » Sat Dec 06, 2008 10:54 am

Dear Friends,
Your views are solicited on the following query:-

A 100% EOU purchased goods from an unregistered dealer.
VAT on the above goods purchased is paid to the State Government by the purshaser.
Now, whether refund of the same can be claimed, on account of purchase of raw materials used in manufacturing process to produce export goods?
A senior profesional told me that such an amount paid can not be refunded and can only be set off with the amount of VAT liability in the subsequent months.
But if the VAT paid can only be set off then it will lead to blockage of money of the company.
Please clarify.
Regards,
Mitali
mitali.cs
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Re: VAT on purchase from unregistered dealer

Postby ASHOK GUPTA » Sat Dec 06, 2008 12:01 pm

Respected Member,

As per my knowledge ,in most of the States ,in case of purchase from Unregistered Dealers VAT ( earlier concept of PURCHASE TAX)is not required to be paid.Logic behind this is that you will not be getting any set off.

Pl let us know the State you are referring to.

Regards,

CA ashok Gupta
ASHOK GUPTA
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Posts: 25
Joined: Tue Nov 18, 2008 9:47 am

Re: VAT on purchase from unregistered dealer

Postby mitali.cs » Sat Dec 06, 2008 3:51 pm

The company comes under State U.P.
The company has already deposited VAT on purchase from unregistered dealer for the month of April, 2008.
Now, the same is being adjusted with the VAt liability in the subsequent months.
Whether this action by the compani is correct? I mean is there any provision to calim refund of the VAt paid on purchase from Unregistered Dealer?
mitali.cs
Addict eMind !
 
Posts: 215
Joined: Tue Aug 21, 2007 11:26 am

Re: VAT on purchase from unregistered dealer

Postby ASHOK GUPTA » Sat Dec 06, 2008 4:54 pm

I have no exact idea about UP Vat laws,but the action of the company is correct to set it off against future liabilities.

Many States do not have the refund provisions,only after the assessment for a particular year is over and there is a refund then only refund can be granted.

Regards

CA Ashok Gupta
ASHOK GUPTA
Professional eMind !
 
Posts: 25
Joined: Tue Nov 18, 2008 9:47 am


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