Tax will be calculated on gross profit or on turnover?

For a trader registered in composition scheme tax will be calculated on the gross profit or on the turnover.

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3 Answer(s)

Tax will be calculated on turnover only.

Answered on June 15, 2017.
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For a trader in edible oils 1st case …if as registered in composition scheme.. if the tex will be calculated on turnover say my total purchase is rs 70 lacs and sale is rs 75 lakh and the rate of tex is 1% then would I have to pay rs 75000 as tex (1% of the sale ) but if i do file as a regular taxpayer (not registered in composition scheme ) in that case I would have to pay tex on 75 lakh minus 70 lakhs that is on my profit of rs 5 lakh at a rate of 5% which concludes to rs 25 thousand only so I would have to pay more tex if i get registered in composition scheme….. pls make me clear

Answered on June 15, 2017.
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What is the right answer

Answered on June 16, 2017.
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Your Answer

Gen GST