As per DVAT,there are 2 schemes applicable for Composition Dealers in Works Contract
Scheme A and Scheme B
Difference between Scheme A and B
|
SCHEME A |
SCHEME B |
|
It has lower rate |
It has higher rate |
|
Conditions Contractor should not have · Interstate Purchases of Goods · Interstate Sales
However,he can have Interstate purchase of Capital goods
|
Conditions Contractor should not have · Interstate Sales
However ,he can make Interstate purchases of goods and capital goods against C Form,F Form He can also Import goods from outside India |
Rates Applicable under Composition in both Schemes
|
Type of WCT |
Scheme A Rate |
Scheme B Rate |
|
Construction Contracts (Value of Land is included in Total Consideration) (if entire consideration Is received after completion of works contract, then not covered here) |
1% |
3% |
|
Printing Contracts Textile Processing Electroplating/Electro Galvanizing Re-treading of old tyres |
2% |
3% |
|
All Other Contracts |
3% |
6% |
Note:-
Above Rates applicable are on Total Turnover (Labor+Material)
What are the Conditions to be Satisfied in both Schemes
-a-
- Purchase should be from Registered Dealers only (2% of Purchase or 25 lacs whichever is less can be from Unregistered Dealer)
- Input of Purchase cannot be taken
- On Sale Also,Tax invoice cant be issued
- Only Retail Involce to be issued and tax should not be separately collected on bil
- Separate Records of different types of purchases can be prepared
- On Sale of P&M outside state,full rate of tax to be charged (C Form cannot be used)
-ea-
What is the Return Form Applicable for Composition Dealers?
View answer
Contractor has to file DVAT Return in Form DVAT 17 in Composition Scheme
(Normal Contractor files TDS Return in DVAT 16)