Composition scheme

AJAY PATWARI (ARTICLE) (68 Points)

11 October 2019

will tax be levied on sale of nil rated goods if he is coverd under the scheme?if yes then why?

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6 Replies

Priya Kashyap (Student) (7053 Points)
Replied 11 October 2019

Yes, it will be at nominal rate 5% .

AJAY PATWARI (ARTICLE) (68 Points)
Replied 12 October 2019

But why it will be levied since nil rated are covered under exempt supply?

mehul (Student CA IPC / IPCC) (151 Points)
Replied 12 October 2019

Tax is 5% of turnover .Turnover includes exempt supply.
and 5% for restuarant services
manufacturers and traders only 1% tax

AJAY PATWARI (ARTICLE) (68 Points)
Replied 12 October 2019

But for traders tax is calculated on taxable turnover..

mehul (Student CA IPC / IPCC) (151 Points)
Replied 12 October 2019

U never mentioned if it's sale made by trader or manufacturer

AJAY PATWARI (ARTICLE) (68 Points)
Replied 12 October 2019

Nothing is mentioned in que. about the person's status

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