Wb vat

PARTHA SARATHI GHOSH (Querist) 18 December 2011 This query is : Resolved
IS PURCHASE TAX CAN BE ADJUSTED AS PER WB VAT RULE? IN ANDHRA PRADESH AND KERALA IT CABE ADJUSTED,HOW?

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Raj Kumar Makkad (Expert) 18 December 2011
Section 27 C of WB VAT Rules deals with your query which is re-produced as under:

27C. (1) Where the ownership of a part, division or unique of the business of a
registered dealer is transferred by sale, gift, bequest, inheritance or otherwise,
or transferred by way of a lease or licence, and if the transferee, lessee or
licensee, as the case may be, carries on such business as a part of his existing
business or a new business in some other name, he shall, for the purposes of
this Act (except for the liabilities under this Act already discharged by the
transferor for lessor or licensor, as the case may be) be deemed to be a dealer in
the fourth in the matter of payment of any tax, penalty or interest payable by or
due from the transferor for lessor or licensor, as the case may be, in respect of
all the periods immediately preceding the date of such transferred in relation to
such part, division or unit.
(2) If the transferee, lessee or licensee is a registered dealer and carries on the
business referred to in sub-section (1), he shall, by an application under section
27, get his certificate of registration duly amended.
(3) If the transferee, lessee or licensee is not a dealer registered under this
Act and if the terrace on business from such part, division or unit, he shall,
notwithstanding anything contained in section 10, section 11, or section 14, be
liable to pay tax under this Act, and be liable for registration under section 24,
from the date of such transfer.
(4) Where the transferee, lessee or licensee is the deemed to be a dealer in
default under sub-section (1) for any amount of tax, penalty or interest payable
by, or due from, the transferor for lessor or licensor, as the case may be, such
amount of tax, penalty or interest shall be recoverable from such transferee,
lessee or licensee under section 55.

Raj Kumar Makkad (Expert) 18 December 2011
Section 34 of VAT Rules is applicable in Andhra to deal with same situation and provision is also in VAT rules of Tamilnadu.

soumitra basu (Expert) 18 December 2011
Purchase tax to be paid by the dealer shall be treated as input tax and the same can be adjusted with Output Tax.