As per provisions contained in section 16(3), any small dealer registered under VAT, whose turnover does not exceed Rs. 50,00,000/- (Rupees Fifty Lacs) in the preceding year may, at his option, avail the composition scheme under which the dealer would be allowed to pay tax at a nominal compounded rate of 0.25%
Every Registered dealer other than a dealer engaged in execution of a works contract, having liability to pay tax under the Act is entitled to avail this scheme, other than the following-
1. An importer ; or
2. A manufacturer ; or
3. A dealer engaged in execution of works contract ; or
4. A dealer who sales goods in the course of import into or export out of the territory of India ;or
5. A dealer who sales goods in the course of inter state trade or commerce ; or
6. A dealer who transfers goods otherwise than by way of sale within or outside the state.
In case of unregistered dealer who becomes liable to pay tax during the current financial year or opts for voluntary registration, he can go for composition scheme provided the turnover of such dealer should not have been more than Rs. 50 Lacs during the period from the commencement of the year in which he gets himself registered to the date of registration.
However, A registered dealer opting to pay tax under sub-section (4) of section 18 for a year shall not –
(a) have any goods in stock which were brought from outside the State on the day he exercises his option to pay tax by way of composition and shall not use any goods brought from outside the State in the execution of works contract, after such date;
(b) be a dealer who has claimed input tax credit on stock in hand of goods, as on the date on which he opts to pay tax under sub-section (4) of section 18;
(c) be a dealer involved in transfer of property in goods in the execution of works contract in the course of inter-State trade or commerce; and
(d) be a dealer who despatches his goods otherwise than by way of sale to outside or within the state for execution of works contract.
However, the dealer opting to pay tax under this scheme shall not be allowed to issue a tax Invoice Hence, the purchaser or buyer shall not be allowed to avail any input tax credit any input tax credit on purchases made from a dealer under this scheme.
but i think u r not very clear about what u really want to know from us…
bharat wrote on 03/16/07 at 10:32 am :
Query
2?. What is Composite Tax in Vat?
Arun Kumar Agarwal wrote on 03/18/07 at 1:33 pm :
Composition Scheme
As per provisions contained in section 16(3), any small dealer registered under VAT, whose turnover does not exceed Rs. 50,00,000/- (Rupees Fifty Lacs) in the preceding year may, at his option, avail the composition scheme under which the dealer would be allowed to pay tax at a nominal compounded rate of 0.25%
Every Registered dealer other than a dealer engaged in execution of a works contract, having liability to pay tax under the Act is entitled to avail this scheme, other than the following-
1. An importer ; or
2. A manufacturer ; or
3. A dealer engaged in execution of works contract ; or
4. A dealer who sales goods in the course of import into or export out of the territory of India ;or
5. A dealer who sales goods in the course of inter state trade or commerce ; or
6. A dealer who transfers goods otherwise than by way of sale within or outside the state.
In case of unregistered dealer who becomes liable to pay tax during the current financial year or opts for voluntary registration, he can go for composition scheme provided the turnover of such dealer should not have been more than Rs. 50 Lacs during the period from the commencement of the year in which he gets himself registered to the date of registration.
However, A registered dealer opting to pay tax under sub-section (4) of section 18 for a year shall not –
(a) have any goods in stock which were brought from outside the State on the day he exercises his option to pay tax by way of composition and shall not use any goods brought from outside the State in the execution of works contract, after such date;
(b) be a dealer who has claimed input tax credit on stock in hand of goods, as on the date on which he opts to pay tax under sub-section (4) of section 18;
(c) be a dealer involved in transfer of property in goods in the execution of works contract in the course of inter-State trade or commerce; and
(d) be a dealer who despatches his goods otherwise than by way of sale to outside or within the state for execution of works contract.
However, the dealer opting to pay tax under this scheme shall not be allowed to issue a tax Invoice Hence, the purchaser or buyer shall not be allowed to avail any input tax credit any input tax credit on purchases made from a dealer under this scheme.
but i think u r not very clear about what u really want to know from us…