purchase from a unregistered dealer in haryana
Rakesh Gupta
(Querist) 14 June 2010
This query is : Resolved
I am a manufacturer in haryana & registered under CST .
Complete goods sale is inter state.
For scrap purchase i pay 5.25 % tax & for sale getting 2%.
Because of tax difference my complete money became block in tax & unable to do the business & in haryana it is not easy take the rebat.
Can i do purchase from a unregistered seller to avoid the above problem.
Or tax will be applicale to also equally on purchase from a unregistered dealer (who's turnover is less than 5 lacs)
AMIT BAJAJ ADVOCATE
(Expert) 14 June 2010
It is advisable to apply for the refund of excess ITC of 3.25%. There may be some technicalities or difficulties due to red-tapism in getting the refund but ultimately you will get the refund.
You can purchase from unregistered dealers, but make sure you get the bills from them as proof of purchase.
If you purchase goods from unregistered dealers then you will be paying the CST @2% on Interstate sale and no excess ITC will be standing to your credit and hence no refund to claim.
Rakesh Gupta
(Querist) 18 June 2010
Thankyou for your kind advice.
Please tell me there is provision to purchase without tax in any respect of interstate sale or with any form to avoid refundable amount.
I will be thankful to you very much.
AMIT BAJAJ ADVOCATE
(Expert) 18 June 2010
The only way out in your case to avoid refund is to purchase from unregistered dealers, where no tax will be payable at the time of purchase and you will be paying only CST on your interstate sales.
But as suggested above you should make sure that you get bills from unregistered dealers for scrap purchase because the assessing officer may ask for it at the time of assessment.
