Go AD-Free with CAclubindia Pro and get a FREE CCI Coffee Mug. Subscribe Now!

Composition scheme

sunil balani (student) (89 Points)

23 February 2018

I am a composition person and if I make purchase from a composition person then will I have to pay any reverse charge?

Am I allowed to to make purchase from composition person ?

Reply
Follow
Share

4 Replies

vamsi krishna (Article Assistant) (268 Points)
Replied 23 February 2018

Sir,

as per my understanding of law,

there is no bar on purchases from whom you have to make.

and onemore thing is, you no need to pay any tax under reverse charge if you make any purchases from a composite dealer

Thanks

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

sujith kumar dasa (banglore) (1496 Points)
Replied 23 February 2018

any purchase by registered person from unregistered person is liable to RCM under sec 9(4) of CGST Act. Since composition person is a registered person no need to pay RCM on purchases from him.

Also note that RCM u/s 9(4) of CGST Act is deferred from 13th oct 2017 to 31st March 2018

Sumit Sarswat (Student) (3154 Points)
Replied 24 February 2018

No you don't have to pay tax under RCM if supplier is also registered under composition scheme.

Yes you are allowed to make purchase from composite supplier.
but in any case you can not claim ITC.

Sumit Sarswat (Student) (3154 Points)
Replied 24 February 2018

No you don't have to pay tax under RCM if supplier is also registered under composition scheme.

Yes you are allowed to make purchase from composite supplier.
but in any case you can not claim ITC.