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Delhi vat - composition

sanjay jha (service) (99 Points)

31 October 2013

UNDER DELHI VAT, KINDLY GUIDE

A) IS COMPOSITION SCHEME TO BE OPTED AT THE TIME OF REGISTRATION ITSELF.

B)IF COMPOSITION SCHEME IS OPTED OR NOT OPTED , WHAT WILL BE THE TAXATION STRUCTURE.

C) WHAT VALUE OF THE TURNOVER, GOODS CAN BE PURCHASED FROM OUTSIDE DELHI, IF COMPOSITION SCHEME IS OPTED.

D) IF OUR EX DELHI PURCHASE IS ABOUT 30% VALUE OF TOTAL PURCHASE THEN WILL IT BE BENEFICIAL TO OPT FOR COMPOSITION SCHEME.

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Focus (CA-Final Student) (272 Points)
Replied 07 November 2013

1. Composition Scheme under DVAT can be opted for in the beginning of the Financial Year by making an application in DVAT 01 withing 30 days of the beginning of the financial year, i.e. 30th April

2. If Composition Scheme is opted, the dealer shall have to pay tax @ 1% of the turnover of sale of all goods of the dealer.

Works Contractors opting for composition scheme are required to pay tax @ 2.5% if all turnover is under Local Act and 3% if turnover includes interstate sales.

3. You cannot purchase or sell any goods outside delhi except in case of works contractors who have opted for Tax @ 3%

The works contractors paying tax @ 3% can purchase goods from outside Delhi after paying full rate of applicable taxes and are not allowed to make central purchases or stock transfer against central statutory forms.

Hope this is of some help to you :)

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