This document discusses value added tax (VAT) and provides details on composition schemes for smaller dealers under VAT. Small dealers with annual gross turnover not exceeding Rs. 50 lakh have the option to pay tax at a small percentage of gross turnover under the composition scheme. They will not be entitled to input tax credits but can pay simplified returns on a monthly or quarterly basis. The document also provides a case study of a company that manufactures high pressure die casting, low pressure die casting, sand core boxes, and ready-to-fit inserts as examples of goods subject to VAT.

1. PRESENETED
BY
SHREEDHRA V.K

2. introduction
A value added tax (VAT) is a form of consumption
tax. From the perspective of the buyer, it is a tax on the
purchase price. From that of the seller, it is a tax only
on the value added to a product, material, or
service, from an accounting point of view, by this stage
of its manufacture or distribution. The manufacturer
remits to the government the difference between these
two amounts, and retains the rest for themselves to
offset the taxes they had previously paid on the inputs.

3. Meaning of small dealer
A reseller, registered under the VAT Act and engaged
in buying and selling goods within india, and having
an annual turnover of sales not exceeding fifty lakh
rupees in the preceding year will have an option to pay
tax at the compounded rate of 0.25 %, on the entire
turnover of sales. Dealers having gross sales not
exceeding fifty lakh rupees in the year 2011-2012, can
also opt for this scheme. However, dealers effecting
inter-State sales or inter-State purchases are not
eligible for this scheme

4. COMPOSITION SCHEME

Small Dealer with annual gross turnover not exceeding
Rs. 50Lakh who are otherwise liable to pay VAT, shall
however have the option for a composition scheme
with payment of tax at small percentage of gross
turnover. The dealer option composition scheme will
not be entitle to input credit.

5.  Under Vat simplified form of return are notified.
Returns are to be filed monthly/quarterly as specified
in the state acts/rules, and will be accompanied with
the payment challans. Every return furnished by the
dealer will be scruitnised expeditiously within
prescribed time limit from the date of filling the
return. If any technical mistake is detected on
scrutiny, the dealer will be required to pay the deficit
appropriately.

6. Dis adavantages

7. Case study
 3d Concept Tooling
 No. 32, 1st Cross, Bashyam
Nagar, Srirampuram,, Bangalore, 560021
 91-80-23123439
 91-80-23123439
 Details :
 Contact Person: MR. RAVICHANDRAN
 Email: 3dconcept@vsnl.net
 Branch: Bangalore
 Functional Information
 Business Categories : Cnc Machines, Dies & Moulds, Others,
 Business Work : Exporters Of Enthive Components
, Manufacturers Of High End Tools & Dies Dies & Moulds

8. Products
 High pressure die casting
 Low pressure die casting
 Sand core box
 Ready to fit inserts

9. Products - High Pressure Die
Casting

10. HPDC Dies

11. Special tax rates for smaller
dealers
 A reseller, registered under the VAT Act and engaged in buying and
selling goods within india, and having an annual turnover of sales not
exceeding fifty lakh rupees in the preceding year will have an option to
pay tax at the compounded rate of 0.25 %, on the entire turnover of
sales. Dealers having gross sales not exceeding fifty lakh rupees in the
year 2011-2012, can also opt for this scheme. However, dealers effecting
inter-State sales or inter-State purchases are not eligible for this
scheme.
 Similarly, works contractors registered under the VAT Act will have an
option to pay tax at a compounded rate of 2% on the entire contractual
transfer price, irrespective of quantum of contractual transfer price.
 Once a dealer has exercised option for payment of tax at the
compounded rate, it will be valid for one financial year.
 It may be mentioned here that the dealers opting for payment of tax at
compounded rate are not entitled to input tax credit and can not issue
tax invoices.

12. THANK YOU