Turnover - composite scheme

[d.v. gupta]

we are dealing in taxable as well as in tax free goods. we want to adopt composition scheme under delhi vat. whether we have to pay 1% tax on turnover of taxable goods or turnover including tax free goods.

AI Summary

Businesses Must Pay 1% VAT on Total Turnover, Including Tax-Free Goods, Under Delhi VAT Composition Scheme A query was raised about whether a business dealing in both taxable and tax-free goods should pay a 1% tax on the turnover of taxable goods alone or on the total turnover, including tax-free goods, under the Delhi VAT composition scheme. The response clarified that the composite tax must be paid on the total turnover, with no deductions for tax-free turnover. The term 'total turnover' refers to the aggregate sale price amounts received or receivable, minus any tax liabilities under the relevant section of the Act.