Small Dealers and Composition Scheme ?
Small dealers whose gross annual turnover does not exceed Rs. 4 lacs need not to pay tax under VAT. However small dealers having turnover between 4 lacs to 20 lacs will be covered under the special lump-sum composition scheme where they will pay only 1% of the turnover as tax . A person covered under the composition scheme can charge 1% as tax from his customers. However, the person who has opted for turnover tax can not claim input tax credit under VAT.
