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

Dealer Questions VAT Composition Tax on Total Sales vs. VAT Sales Only; Liability May Vary by State A dealer under a VAT composition scheme, with total sales of Rs 30 lakhs (including Rs 7.5 lakhs at 4% VAT and Rs 22.5 lakhs VAT-free), inquires about the liability to deposit composition tax. The question is whether the 1% composition tax applies to the entire Rs 30 lakhs or just the Rs 7.5 lakhs subject to VAT. The response indicates that the liability varies depending on the state and specific transaction circumstances.