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Composition Scheme

Ritesh (CA Final) (326 Points)

31 December 2008

Hi all, Please help,

Could anyone throw light on as to what Composition Scheme is all about??????If anyone could let me know where i can get the relevant matter related to Composition Scheme,it would be highly appreciative of him/her?

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Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 01 January 2009

Any good current commentary would have details.

Broadly a works contractor provding the specified services can opt for payment of a rate fixed - 4.12% on the gross value fo composite services. This amount canbe charged to the cusotmer + credit on capital goods used for the same would be available + input services used for provding the service or those that are specified in the dfinition or thsoe that are used for business would be allowed.

There may be limited valuation issues in this option. The option is to be exercise contract wise and if for all can be a general intimation that in future all contracts would be under that scheme.