Composition scheme

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kunal gaikwad

kunal gaikwad (Querist)
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09 October 2013 I want to know what exactly is composition scheme???

CA UMESH DULAL

CA UMESH DULAL (Expert)
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09 October 2013 composition scheme is lumsum payment of tax at specified rate with out taking credit of input tax paid

CS RAJESH C.CHOUDHARY

CS RAJESH C.CHOUDHARY (Expert)
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09 October 2013 Agree with umeshji

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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09 October 2013 Composition scheme for small dealers
Option to dealer with annual gross turnover is equal to or less than 50 lacs……

Except:

A dealer who sells goods inter state.

A dealer who imports or exports goods

Transfers goods outside the state otherwise than by way of sale or for execution of works contract

Merit/Demerit:

Vat payable @ 0.25% of the taxable turnover.

Simple return form.

No input tax credit allowed to such a dealer.

No other dealer can claim input tax credit on invoice given by small dealer.

No records required to be maintained except for sale purchase and inventory.

Must not purchase goods from outside the state.

Its an overall concept it may vary, its depend on state laws...

CA UMESH DULAL

CA UMESH DULAL (Expert)
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09 October 2013 Partially agree with aryan; turnover for composition scheme and rate differ with state vat
For remaining point I agree with aryan

CA Pallav Singhania

CA Pallav Singhania (Expert)
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09 October 2013 @ Umesh ji,
Totally agree with you,

That's why in the last line I mentioned it...