Unregistered Dealers

It is not clear that what type of purchase you made but in my opinion purchase of dealing goods is essential for the registration of VAT no from the commercial tax department but it is provided under the VAT Act,above 5 lakhs turnover the dealing of goods in markets needs registration under VATAct,2005.

Yes it is essential for theregistered dealer to submit their profit and loss account and trading account at the time of assessment of tax which should also be relevent to the IT returns.

Thanking you.

Thank you for your prompt reply Dr. Kumar but unfortunately my query is quite different. What I meant is explained with the help of an example:

An assessee purchases a gift costing 10,000/- for a business client. The Cash memo issued to him is from an unregistered VAT dealer. My query is in such a case can the assessee claim 10,000/- as expenses under business promotion a/c.

 It is immaterial whether the purchase was made from registered or unregistered dealer. If you can prove that the purchase was genuine with supporting evidence and was for business purpose, the same is allowable as business deduction.