Composition tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2012 what is composition tax and what is rate , how we treat under composition tax , if any one purchasing at 12.5 % vat , then he can adjust this 12.5% with composition tax.

Vineet

Vineet (Expert)
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25 August 2012 composition scheme available to dealers whose turnover is less than 50 lacs.Under composition tax dealer have to pay tax at small percentage at reducing rate.that small tax is decided by state governments.

if you opt for this scheme in that case you can't claim input credit and you don't even issue a taxable invoice while executing a sale.

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