COMMUNICATION

Order dated 8th March 2007

Re: Payment of Purchase Tax on Purchases from Unregistered Dealers

GOVERNMENT OF WEST BENGAL

OFFICE OF THE.....Commissioner Commercial taxes, West BengaL

...............\14, Beliaghata Road, Kolkata - 1.....................

Memorandum No. ..201 CT/PRO dated the.......08.03.2007

9I/PRO/2007/39

To.... .G. H. Agencies (P) Ltd............. ......................... ........

..........52, Zakaria Street, 3rd Floor, Kolkata - 73.................

Sub: Status of purchase tax payable in case of purchases from unregistered seller for the period 01.04.05 to 31.07.06 and from 01.08.06.

Ref: Your letter dated 13.01.07.

Sir,

With reference to above this is to inform you that, there is a contingent liability to pay tax on purchase prior to and on and from 1.8.06.

Prior to 1.8.06 no input tax credit under rule 20(b) of the WB VAT Rules, 05 was admissible to a registered dealer for tax paid or payable by him u/ s. 12 of the WB VAT Act, 03 unless the said purchasing dealer accepts from the selling dealer an original invoice, or bill, as the case may be, as referred to in CL (b) of sub section (5) of Section 22 of the said Act, containing all the required information as prescribed in rule 92 and which has been duly obtained from a dealer against a bonafied transactions. w.e.f. 1.8.06, u/s. 12 of the said Act contingent liability to pay tax on purchase by a registered dealer other than those enjoying composition u/s. 16(3), 16(3A), 16(3B) and 18(4) of the WB VAT Act, 03 is restricted to purchases of goods which are not meant for the purpose specified in Cl. (a), to Cl (i) of sub-Section (4) of Section 22, or.

Purchases of goods specified in the negative list appended to Sec. 22 where no input tax credit or input tax rebate is allowed. Rule 20(b) as mentioned is omitted w.e.f. 1.8.06.

The matter relating to refund of tax paid in excess is dealt with by way of assessment u/ s. 46 of the WB VAT Act, 03, when a registered dealer brings to the notice of the Commissioner in writing within six months from the end of any year the excess payment of tax and Commissioner is satisfied on the grounds adduced by the registered dealer.

Thanking you,

Yours faithfully,

dt. O8/03/07

Sd/ - (B. Sen)

Assistant Commissioner

Commercial Taxes, Public Relation