5 Levy of Tax on turnover of purchase

(1) Every dealer, who, in the course of business, makes purchase of any taxable goods -

(i) other than non-vat goods from a person other than a registered dealer; or

(ii) non-vat goods, the earlier sale or purchase of which has not suffered levy of tax either under the provisions of the erstwhile Act or under the provisions of this Act, shall be liable to pay tax on the turnover of purchase of such taxable goods except non-vat goods or turnover of purchase of non-vat goods or both, as the case may be.

(2) Tax on the turnover of purchase of taxable goods referred to in clause (i) or clause (ii) of sub-section (1) shall be levied at the same rate at which turnover of sale of such goods is liable to tax in accordance with the provisions of section 4.