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

[YAGAY and SUN]

Dear Meil,

Composition Scheme:-Specified for Small Traders -5 to 50 Lakhs at the rate of VAT 1 percent .

Team YAGAY & SUN

(Indirect Tax Consultants)

[meil megha]

whether the rate is same for works contractor also

[YAGAY and SUN]

Dear Meil,

No rate of tax would be different from the rate under the composition scheme under UP VAT Act,2008 depending on the nature of goods involved in execution of works contract.

Regards,

Team YAGAY & SUN

(Indirect Tax Consultants)

AI Summary

Composition scheme rate applies to eligible small traders; works contract tax is determined by the nature of goods used.
Composition scheme under the UP VAT Act provides a simplified single composition rate for eligible small traders within the notified turnover band. For works contractors opting for composition, no separate works-contract rate is prescribed; the composition rate applicable is determined by the nature of goods involved in executing the works contract.