Liability of Composition tax

[Guest]

if a dealer opts composition scheme under vat act having sale of Rs 30lacs (including 4% sale Rs 7.50 Lacs And Rs.22.5 lac vat free sale).Is the dealer liable to deposit composition tax 1% at total sale of Rs. 30Lac or On Rs 7.5 lac .

[Surender Gupta]

This issue is different from state to state and circumstances in which transaction is being executed.

AI Summary

Composition tax liability may apply on taxable turnover or total sales depending on state rules and transaction circumstances. Whether the 1% composition levy under the VAT composition scheme is payable on total sales or only on taxable sales depends on state-specific composition rules and the particular circumstances of the transactions; liability and the applicable base are not uniform across jurisdictions.