What is the composition scheme under VAT. I've checked the sales invoices containing stamp of 'under composition' and found that no VAT is being charged from customers and vat composition rate of auditee is .25%. Please explain this.
10 September 2009
Dealers, usually small traders, satisfying certain critera as per Local Vat laws can opt for Composition Scheme. The have to pay tax as small percent on their sales turnover. They cannot charge this tax in their invoice and cannot claim vat credit on purchases. The cannot issue Tax Invoice, so the purchasing dealer is not entiled to Vat input Credit. The may write as sale under composition scheme or any other words as per State Vat Law
10 September 2009
Dealers, usually small traders, satisfying certain critera as per Local Vat laws can opt for Composition Scheme. The have to pay tax as small percent on their sales turnover. They cannot charge this tax in their invoice and cannot claim vat credit on purchases. The cannot issue Tax Invoice, so the purchasing dealer is not entiled to Vat input Credit. The may write as sale under composition scheme or any other words as per State Vat Law
CAclubindia
