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Composition scheme - jewellery business

11 July 2017

Can a jeweller opt for composition scheme ??
as he sale jewellery along with charging making charges ( which is service)

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8 Replies

casirishkumar@gmail.com (34 Points)
Replied 11 July 2017

yes.opt for composition.it is naturally bundelled

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Yash Jain (122 Points)
Replied 11 July 2017

thanks for ur comment

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 12 July 2017

Not advisable

3 Like

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 12 July 2017

Composition scheme is not advisable for Sarrafa dealers who purchase from unregistered dealer.

Because they have to purchase after paying @ 3% under RCM for which no credit available.

Also on sale they have to pay @ 1% on sales which would not be collected from customer .

So they have to pay 4% aggregate.

2 Like

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 12 July 2017

Composition scheme not advisable for Jewellery business. Bcoz, They can reach 75lakhs is very Quickly and also compared regular tax and Composition Tax then Composition Tax is also Higher....
So, Go to regular..

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casirishkumar@gmail.com (34 Points)
Replied 12 July 2017

actually composition scheme is not preferable for gold industry.

1 Like