Composition Scheme for works contractor under Odisha Vat Act

By | February 28, 2016

Composition Scheme for works contractor effecting sales by way of transfer of property in goods

Odisha Government vide Notification No. 1457-FIN-CT1-TAX-0035-2015 dated 16th January, 2016 has provided a composition scheme for a dealer who has effected sales by of transfer of property in goods under a works contract. Subject to the conditions specified in the notification, such dealer may in lieu of amount of tax (VAT), pay by way of composition as specified below:-

Nature of Works Contract Composition tax rate (As % of turnover)
Scheme A Scheme B
Every registered dealer engaged in execution of works contract of following categories and incidental or ancillary activities in connection with or thereto:

·  Civil Contracts;

·  Repair & maintenance of any moveable Property, including vehicles, AMCs & other similar contracts;

·  All other types of works contracts, including those involving moveable goods, not specified elsewhere in this notification.

3% 6%
Every registered dealer engaged in,-

·  Printing and/or book-binding;

·  Textile processing such as dying, fabrication, tailoring, embroidery and other similar activities;

·  Electro plating, electro galvanizing, anodizing, powder coating and other similar activities;

·  Re-treading of old tyres.

2% 4%

Scheme A : A registered dealer, at any time during the period for which he opts to avail this Scheme, shall not purchase or procure goods from any place outside Odisha and not sell or supply goods to any place outside Odisha.

However, he may procure his own Plant & Machinery and Equipments from outside Odisha, meant exclusively for use in execution of works contract by him or for inward transfer of stocks from other States or by way of imports.

Scheme B : A registered dealer opting to pay composition tax shall be entitled to purchase goods required for works contract in course of inter-State trade or commerce on the strength of his registration certificate or by inward transfer of stocks from other States or by way of imports from other countries solely for the purposes of utilizing the same in works contract in Odisha only.

Provided the dealer shall use the material or goods imported or procured from outside Odisha strictly for use in execution of the works contract.

[Notification No. 1457-FIN-CT1-TAX-0035-2015 dated 16th January, 2016]

Composition Scheme for the registered dealer who undertake construction of flats, dwellings or buildings etc.

Odisha Government vide Notification No. 1461-FIN-CT1-TAX-0035-2015 dated 16th January, 2016 has provided a composition scheme for the registered dealer who undertake the construction of flats, dwellings or buildings or premises and transfer of property along-with land or interest underlying the land. Subject to the conditions specified in the notification, such dealers may, in lieu of VAT, pay tax at the rate of 3.5% of the aggregate amount determined in the agreement or value determined for the purpose of Stamp Duty in respect of said agreement under the Odisha Stamp Rules, 1952, whichever is higher.

[Notification No. 1461-FIN-CT1-TAX-0035-2015 dated 16th January, 2016]

 

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