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Composition scheme

Indirect Taxation

In composition scheme , inter state supply of goods is not allowed , but is inter state supply of "SERVICES" allowed which is less than 10% aggregate turnover of preceding FY or 5 lackhs which ever is higher..?

Rajath Tumma

CA Inter

★ 2K+

08-Feb-20 11:46

487

Answers (4)

Composition Scheme is available only for dealers doing intra-state supplies. If a dealer is involved in inter-State supplies, then they have to opt out of the scheme. So whether it is inter state supply of goods or services, it is not allowed.

CA Suraj Lakhotia

Admin

09-Feb-20 12:59

Thanks to the user for asking this query. One related doubt got cleared as well which was thought off as otherwise.

Deepak Gupta

CA Inter

★ 1K+

11-Feb-20 01:26

There was an error in my earlier answer. Please ignore. As per the latest provisions - supply of services up to 10% threshold can be made interstate as well. The restriction is only for the interstate supply of goods.

CA Suraj Lakhotia

Admin

11-Feb-20 17:17

CA Suraj Lakhotia Admin

Yes sir , 10% of aggregate turnover of previous year , can be used for supply of services

Thread Starter

Rajath Tumma

CA Inter

★ 2K+

12-Feb-20 08:31