Composition tax on manufacturer and trader
can anyone Tell me why manufacturer is required to pay tax under composition scheme on aggregate turnover while trader on taxable turnover
Replies (1)
The difference exists because manufacturers are taxed on their aggregate turnover to capture the value of their total business operations, whereas traders are taxed specifically on the turnover of taxable goods to ensure they are not required to pay composition tax on sales of exempt goods, thereby providing them relief on those specific items.
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