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composition

Surendra Mattur (35 Points)

01 July 2017

composition tax can we show igst or local tax?

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13 Replies

anuj rathi (bcom) (275 Points)
Replied 01 July 2017

no sir in your invoice u not charged any tax in invoice..

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Surendra Mattur (35 Points)
Replied 01 July 2017

but how to raise invoice in composition skeem and payment of tax

Surendra Mattur (35 Points)
Replied 01 July 2017

am asking related to hotel business

Gopal Bindal (2 Points)
Replied 01 July 2017

kya composition skeem me inter state purchasing kar sakte hai

Maheswara Swamy (FInance Executive) (40 Points)
Replied 01 July 2017

Composition dealer can not issue tax invoice. You have to issue bill of supply instead of tax invoice. Also, you can not claim input credit on your inputs purchased.

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anuj rathi (bcom) (275 Points)
Replied 01 July 2017

yes u purchase inter state but not sell inter state..
and sir u pay tax from your own pocket not charged from customer

rakesh kedia (chartered accountant) (38 Points)
Replied 02 July 2017

sir in some article i found that where the closing stock comprises the stock purchase from interstate can not opt for composite scheme it it correct.plz guide.

rakesh kedia (chartered accountant) (38 Points)
Replied 02 July 2017

it is my requets to all learned professional that plz throw the light regards the conditions mentioned for composite scheme in proper way so that it could be used inpractical situation.thanx

rakesh kedia (chartered accountant) (38 Points)
Replied 02 July 2017

i am pasting the article of one site plz have a reading of it and then guide me with line which has been made bold

Conditions for applicability include:

Must be a registered taxpayer
Goods held in stock must not have been purchased from outside the state or from outside India
Goods held in stock must not have been purchased from an unregistered dealer; if so, the taxpayer shall pay tax on the goods
Aggregate turnover in the preceding financial year must have been less than 50 lakhs. Aggregate turnover includes the value of taxable and non-taxable supplies, and exempted and exported supplies. It does not include taxes levied under GST or the value of inward supplies
If more than one registered persons have the same PAN, then a registered person shall not be eligible for the composition scheme unless all registered persons under the same PAN opt in for the composition scheme

Those not eligible for the composition scheme include:

Service providers
Suppliers of non-taxable goods
Taxpayers engaged in the interstate supply of goods
Those engaged in supply of goods through an eCommerce operator
Manufacturers of notified goods
Casual taxable persons or non-resident persons

If it turns out that an ineligible taxpayer enters into the composition scheme, he will later be liable to pay the differential tax along with a penalty.