VAT urgent

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can a manufacturer avail the composition scheme under VAT LAW.

while i was going thorough institute module for chapter 9 they have used word manufacture only once and everywhere they have used dealer.

please reply fast its very urgent

Thanks in advance

Replies (1)

IRRESPECTIVE OF MANUFACTURER OR RESELLER , ANY DEALER CAN AVAIL THE COMPOSITION SCHEME , BASICALLY  IT IS IN THE FORM OF WORKS CONTRACTS ,WHERE WHEN INVOLVEMENT OF MATERIALS AS WELL AS LABOUR IS CONSTITUTED IN THE GIVEN CONTRACT ,THEN A DEALER CAN AVAIL THE COMPOSITION SCHEME ,WHERE HE IS AGREED TO PAY LOWER RATE OF TAX ON THE WHOLE CONTRACT VALUE INCLUDING LABOUR , HERE WHEN HE USES ANY INPUTS SUCH AS TAXABLE AND NON TAXABLE GOODS ,IF THE SAID GOODS ARE PURCHASED FROM LOCAL THEN HE CANNOT AVAIL INPUT TAX CREDIT ON LOCAL PURCHASES VICE VERSA IF HE INCORPORATES ANY  MATERIAL WHICH HE PURCHASES FROM OUTSIDE THE STATE FROM HIS RESPECTIVE STATE ACT THEN HE CANNOT AVAIL COMPOSITION OF TAX PAYABLE ON THE SAID PURCHASES INCORPORATED IN THE GIVEN WORK ,ACCORDINGLY HE IS REQUIRED TO PAY TAX ON THE SAID PURCHASES EFFECTED AT THE VAT RATES APPLICABLE IN THE GIVEN STATE AND SUBSEQUENTLY THE SAID TURNOVERS ON WHICH HE PAID THE PURCHASES TAX IS REDUCED FROM THE TOTAL CONTRACT WORKS ON WHICH HE AVAILED THE COMPOSITION OF TAX PAYABLE...........................................

 

G.S.CHANDRA SHAKER
TAX PRACTITIONER_STP

Mobile.No.+91-9395323341/9951038001
Email.Id.chandrashaker7 @ gmail.com
                 chandrashakerstp @ gmail.com

    


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