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Tax calculation under composition scheme

nishant agrawal (35 Points)

26 July 2017

What is the tax liability for a composite dealer when supplying tax free or taxable items or both.

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13 Replies

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 26 July 2017

If tax free item, He don't want pay any Tax except RCM.

If taxable supply he ll be pay Tax on his T/O.

If taxable and Tax free supplies then he ll be pay Tax his turn over (Taxable + Tax free = Turn Over)

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NITIN KOTAK (SERVICE) (1465 Points)
Replied 26 July 2017

tax on only taXable item, please mention your status like manufactuet, whole seller or retaile

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 26 July 2017

May be anyone....
Stand above reply.....

RAMESH D MODI (Proprietor) (4869 Points)
Replied 26 July 2017

1% for traders and 2% for manufacturer on his total sales/ outward supplies.

RAMESH D MODI (Proprietor) (4869 Points)
Replied 26 July 2017

rcm applicable also

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RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 26 July 2017

RCM can't be calculated in T/O....

nishant agrawal (35 Points)
Replied 26 July 2017

Retailers

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 26 July 2017

Dear Nishant.,
Any business you calculate tax is above said way. RCM is not in TO. Bcoz, That is inward supplies not outward......

nishant agrawal (35 Points)
Replied 26 July 2017

A retailer supplied goods of Rs 100000/-(including rs 70000/- taxable goods, Rs. 30000/-

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RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 26 July 2017

he calculate tax on 1lakh....

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nishant agrawal (35 Points)
Replied 26 July 2017

A retailer supplied goods of Rs 100000/-(including rs 70000/- of taxable goods, Rs. 30000/- of tax free goods)

So how much a retailer need to pay in account of tax @ 1%(.5% cgst +. 5% sgst)

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 26 July 2017

Rs. 100000*1%=1000.
500 + 500

Manoj Agarwal (Properitro) (34 Points)
Replied 26 July 2017

As per Clause (a), Sub Sec 2 of Sec 10 person engaged in making any supply of goods which is not liable to tax under GST Act is not eligible to opt for composition scheme.