Accountancy Forum

Can any one guide me regarding the following scenario

I am a registered company and fall in R.T.O, if i buy something from an unregistered person and then sell it and charge sales tax from the customer and do not claim any input and deposit the whole sales tax amount. Would i have any problems either now or at the time of audit? Is there any law which prohibits me form purchasing from an unregistered person?

Would really appreciate any help especially if any reference is given.

Dear,

There is no bar in the Sales Tax Laws, which might refrain you to purchase goods from an unregistered person. however, for claiming input tax, goods must be purchased from a registered person otherwise no input tax may be claimed, if paid.

Furthermore, you will have to charge sales tax regardless of the fact that goods have been purchased from an unregistered person.

Best Regards.

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by faisal_desperado</i>
<br />Dear,

There is no bar in the Sales Tax Laws, which might refrain you to purchase goods from an unregistered person. however, for claiming input tax, goods must be purchased from a registered person otherwise no input tax may be claimed, if paid.

Furthermore, you will have to charge sales tax regardless of the fact that goods have been purchased from an unregistered person.

Best Regards.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
kiya aap bata saktay hu k aik normal admi salried person income tax aur FED return kaisay claim karasakta hai