Composition tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 July 2014
Dear Sir,
In what circumstances the composition tax is preferable instead of VAT & why?
In what circumstances the composition tax is preferable instead of VAT & why?
02 July 2014
Generally for 'works contract'state government has given an option to pay VAT at compounded rate instead of paying at scheduled rate for the transfer of material embedded in the works contract. The determination of the value of such material is a cumbersome process and always debatable though there is a rule prescribed for the same. Therefore, government has introduced composition scheme to mitigate the hardship of dealers through which dealers are permitted to pay VAT ,at a rate lesser than the scheduled rate of material, on the entire value of the works contract.
Like wise , certain state has introduced composition scheme for gold & silver ornament dealers, granite metal crushing units , cooked food and beverages, for right to use of video cassette, medicine & drugs etc.
Like wise , certain state has introduced composition scheme for gold & silver ornament dealers, granite metal crushing units , cooked food and beverages, for right to use of video cassette, medicine & drugs etc.
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 July 2014
Thanks a lot for your information sir
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Opting our of sec 44AD
- Form 121 & TDS deduction
- GST Treatment of Insurance Commission for Existing GST Holder
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Invoice V/S Goods receipt Note Date
- Multiple trade mark
- Regarding appeal to GSTAT
- Transporter Declaration form
- LC charges in relation to Asset purchased should be Capitalised ?
- ITR U for F.Y-2024-2025 From Yesterday
- Inter corporate deposits
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
