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
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