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Vat regular scheme or composit scheme

VAT (Legacy) 2755 views 3 replies

one of my client is registerd regular vat scheme under Guajart value added tax.he is doing Manufacturing of ready mix concrate & sales it. but  he want to start business with two company for composit vat 0.6% scheme  & another company have Regular scheme.

is it possiable ?

if yes which form of return should i file ?

online return file open only one  option  so what can i do ?

 

 

Replies (3)

Dear  Hitesh,

Application for the F.Y. 2006-07 was to be filed before 31-5-2006 in Form 210 and permission for the same will be granted if the dealer is not engaged in the activity of Inter State Sale or Purchase, Transfer from/to Branch/Agent, Import, Export, Sales/Purchases through Agent, Works Contract, Leasing and Manufacturing activity other than notified manufacturing activity. The permission is granted in Form 211 within 15 days from the date of application. Application for permission for subsequent year is required to be made before 30th April of the relevant year. Newly registered dealers have to file application within 90 days from the date of registration. W.e.f. 1-4-2008, a dealer who is granted permission to pay Lump Sum Tax, need not file fresh application for renewal of permission every year.

Composition scheme is subject to above conditions and if your both Company is Manufacturing then you can not avail benefit of Composition scheme.

sir  company is single but  company had issue a bill to their two  customer for 0.06% vat Bill & rest of other had issued Regular Vat 12.5% so it can possiable ?

If your client has two company then how can two scheme or system of return filing acceptable. your client needs to do registration for second company then he can file with composition scheme & regular vat scheme

return filing option will be only once there no two type of system of single company

your client has to do seperate registration for manufacturing & sales its the better option and both company has to file return with its seperate scheme


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