Composition Scheme under UP VAT Act

[meil megha]

What is the rate of Out put tax when the contractor opted for Composition under UP Vat Act

AI Summary

Contractors in UP Composition Scheme: 1% VAT for traders, variable for works contracts under UP VAT Act 2008. A discussion on a forum addressed a query about the output tax rate for contractors opting for the Composition Scheme under the UP VAT Act. An indirect tax consultant clarified that the scheme is intended for small traders with a turnover between 5 to 50 lakhs, taxed at 1 percent VAT. A follow-up question asked if the same rate applied to works contractors. The consultant responded that the tax rate differs under the UP VAT Act, 2008, based on the nature of goods involved in the works contract.