14. Composition Scheme The composition scheme is an elective

Document technical information

Format pdf
Size 58.5 kB
First found May 15, 2016

Document content analysis

Language
English
Type
not defined
Concepts
no text concepts found

Transcript

14. Composition Scheme
•
•
The composition scheme is an elective option which can be exercised by
making an application in Form DVAT 01 within 30 days from the first
day of the beginning of the following year i.e. by 30th April. The option
may only be reversed after the end of the year for which the option is
made. The application for the reversal of the election for this scheme is
made in Form DVAT 03 within 30 days from the first day of the
beginning of the financial year.
Separate Composition Scheme are available for the dealers dealing in
bullion, medicine and works contracts.
14.1 Tax payable under composition scheme
•
•
•
•
Tax payable under the composition scheme is 1% of the turnover of sale
of the dealer. The tax applies to turnover of sales of all goods( including
goods which are exempt from tax under the DVAT Act).
Tax is payable @ 0.1% by bullion dealers opting for composition
scheme.
For composition dealers dealing in medicines, the rate of tax is 1%.
The Works Contractors opting for composition scheme are required to
pay tax @ 2.5% if all the turnover is under Local Act and @ 3% if the
turnover includes inter-state transactions also.
14.2 Restrictions under Composition Scheme
•
•
•
•
•
•
you cannot purchase taxable goods from a person who is not registered
under this Act:
You will not be allowed to claim any credits for input tax paid on your
purchases.
you will not be entitled to issue tax invoices;
you will not be allowed to charge and collect tax from your customers:
and
you will be required to retain tax invoices and retail invoices for all
purchases.
You cannot purchase/sell goods outside Delhi at any time during the
composition scheme, except the works contractors paying 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 purchaser or stock transform against central statutory
forms.
•
you should not be registered under the CST Act.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
purchaser or stock transform against central statutory forms.
14.3 Composition Schemes for contractors
S. No.
1.
2.
Type of contractor
Rate of Tax
Tax Period
Registered dealer engaged exclusively in work
2.5% of the
Quarterly
contracts of the nature of Civil Construction and entire turnover
making all the purchases and the sales during
the period for which composition is opted
within Delhi only (No turnover limit w.e.f. 3011-2005)
Registered dealers engaged exclusively in work 3% of the entire Quarterly
contracts of the nature of Civil Construction
turnover on
and procure goods or supply goods to any place account of work
outside Delhi(No turnover limit w.e.f. 30-11contracts
2005)
executed in Delhi
Composition schemes are subject to such conditions as prescribed in the
particular scheme.

Similar documents

×

Report this document