ORDER NO. 01/2017-UNION TERRITORY TAX (COMPOSITION SCHEME)

The Union Territory Tax (Composition Scheme) was introduced by the Indian government in 2017.

The scheme is applicable to businesses with an annual turnover of up to Rs. 50 lakhs.

Under the scheme, businesses are required to pay a fixed percentage of their turnover as tax.

The tax rates under the scheme are lower than the regular tax rates.

Businesses under the scheme are not eligible for input tax credit.

The scheme is optional and businesses can choose to opt-out at any time.

The scheme is aimed at simplifying the tax compliance process for small businesses.