A person is into business of retail trading of cloth. For 2016-17, sales are Rs. 18 lacs. He has earned rental income of Rs. 1.50 lacs and Rs. 60 thousands as interest in 2016-17. Whether he is required to take registration? If yes or if he wants to take voluntary registration, then can he opt for composition scheme? Please advise?
9 Replies
Studentsca
(CA Practice )
(3577 Points)
Replied 12 August 2017
Registration is not mandatory as aggregate turnover does not exceed Rs. 20 Lakhs.
Yes he can opt for composition scheme if he takes voluntary registration.
Chhatra Singh Dugar
(1464 Points)
Replied 12 August 2017
While calculating aggregate turnover you may avoid interest receipt as it is exempted service. So your aggregate turnover is below 20 lakh. It is at your option whether you go for registration or not.
Chhatra Singh Dugar
(1464 Points)
Replied 12 August 2017
Cont reading...
Now it is assumed that you go for registration. As renting is a service. For composition dealer it is bared. So you can not go in for composition scheme. How can composition dealer issue Tax Invoices for rent ?
So you can not opt for composition scheme.
Now it is assumed that you go for registration. As renting is a service. For composition dealer it is bared. So you can not go in for composition scheme. How can composition dealer issue Tax Invoices for rent ?
So you can not opt for composition scheme.
SSG
(1936 Points)
Replied 12 August 2017
A person in composition scheme has to pay different tax rates on sale of manufactured goods and traded goods?
Chhatra Singh Dugar
(1464 Points)
Replied 12 August 2017
It is 1% on Trading 2% on Manufacturing & 5% on restaurants.
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 12 August 2017
If you are both trader and manufacturer and are registered under composition scheme then GST will be paid @ 2% on all turnover
SSG
(1936 Points)
Replied 12 August 2017
| Originally posted by : CA Altamush Zafar | ||
 |
If you are both trader and manufacturer and are registered under composition scheme then GST will be paid @ 2% on all turnover |  |
So no separate rates for sale of manufactured items and on sale of purchased goods.
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 12 August 2017
No. Because you will have to register yourself as manufacturer under composition scheme.
Mohit Bhasin
(Accounts)
(37 Points)
Replied 29 April 2018
Which direct or indirect expenses on which RCM applicabe and what's the rate of gst in RCM
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