Works Contracts Composition Scheme under Delhi VAT [Notification dt 28th Feb 2013]
The DVAT Deptt has notified Composition Scheme for every registered dealer engaged exclusively in carrying out works contracts for cash or for deferred payment or for valuable consideration in Delhi. Salient features of the DVAT Composition Scheme for Works Contracts are as under:
1. specifies separate rates for different type of works contracts services (ranging from 1% to 6%);
2. broadly envisages two schemes Scheme A and Scheme B;
3. in Scheme A, the dealer has to make buying and selling transactions from within Delhi except for interstate buying of Capital Goods & Equipments, exclusively for execution of the works contracts (DVAT rate ranges between 1~3%);
4. in scheme B, there are no such restrictions on making interstate transactions, like in the case of Scheme A (DVAT rates are between 3~6%);
5. composition dealers under this notification shall not be eligible for the general composition scheme provided by Section 16(1) to 16(10) of the Act.
Besides, there are various other terms & conditions, modalities, etc. specified in the said Notification for compliance while availing the DVAT Composition Scheme for Works Contracts.