Who will not be covered by VAT?

Posted 3 months ago  |    0  | 
General Legal,Taxation & Duty
General Legal Taxation & Duty

1 Answer(s)

Vishal Kumar Thakur
Advocate

Value Added Tax will not cover businesses whose turnover is less than a certain limit. As per White Paper, VAT Act should be so designed that high taxpayers should not be spared from paying more tax, and the small dealers should be free from hassles of compliance procedures.

Dealers with limited turnover would have the option to pay a lump sum amount based on its total turnover at the specified rate as low as 0.25%. For example, in Odisha, a trader having an annual turnover of less than Rs. 2,00,000/-  will not be covered under VAT, and the general tax rates will not be applied.

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