Composition scheme

This query is : Resolved

Report Abuse Follow Query Ask a Query

kunal gaikwad

kunal gaikwad (Querist)
Follow

08 October 2013 I dint get exactly what composition scheme is!!!!!

CA Pallav Singhania

CA Pallav Singhania (Expert)
Follow

08 October 2013 Its an Option to dealer with annual gross turnover is equal to or less than 50 lacs,

Except:
A dealer who sells goods inter state.

A dealer who imports or exports goods.

Transfers goods outside the state otherwise than by way of sale or for execution of works contract...

Merits/Demerits of Composition Scheme..

Vat payable @ 0.25% of the taxable turnover.

Simple return form.

No input tax credit allowed to such a dealer.

No other dealer can claim input tax credit on invoice given by small dealer.

No records required to be maintained except for sale purchase and inventory.

Must not purchase goods from outside the state.

regards,