Composition scheme is the scheme to facilitate small dealers (whose turnover in one year does not exceeds Rs.50 Lac) to pay D-VAT at flat rate of 1% without claiming Input Tax Credits in respect of VAT paid on local purchases made from registered dealers.
1.Who Can apply for Composition Scheme?
Any dealer whose interstate Sales does not exceeds Rs.50,00,000 in a financial year.
2. Who cannot apply for Composition Scheme?
Following are not eligible to opt for Composition Scheme :
3.What is the rate of DVAT applicable on dealer opted Composition Scheme?
Every dealer who is registered under Composition Scheme of D-VAT Act is required to make payment of VAT at flat rate of 1% without claiming benefit of Input Taxes paid on Purchases made from Registered Dealer.
Please Note that w.e.f 18.03.2016 Small Restaurants, Hotels, Caterers and Sweet Shops can also opt Composition scheme of registration but they are required to pay DVAT at flat rate of 5% without claiming benefit of Input Taxes paid on Purchases made from Registered Dealer.
4. What are the features of Delhi VAT composition scheme of Registration?
5. Is it possible to change “From Composition Scheme to Normal Scheme “or “From Normal Scheme to Composition Scheme”?
Yes, Dealer may voluntarily change its scheme both in the beginning as well as during the financial Year.
6. What is the difference between Normal Scheme & Composition Scheme of Registration under DVAT Act?
|NORMAL SCHEME||COMPOSITION SCHEME|
|Rate of Charging VAT||1% or 5% or 12.5%||1%|
|VAT is payable on sale of Exempted goods||No||Yes|
|Benefits of Input Tax Available||Yes||No|
|Tax||Can issue||Cannot Issue|
|Return Form||Very Complex||Easy|
|Annexures||Required to be filed alongwith Return||Not Required to filed alongwith Return|
|Restriction on Central Sales||Never||Yes|
7. What is the procedure to get registration under Composition Scheme?
Follow all steps as specified therein:
(For DVAT Registration – Filing – Consultancy Author Can Be Reached At 9811985576 or on firstname.lastname@example.org)