Composition scheme

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This discussion clarifies eligibility for the composition scheme under Section 10(1) for individuals supplying only taxable services, distinguishing it from the alternative scheme with a Rs 50 lakh turnover limit. It also addresses whether a father's direct payment of Rs 5 lakh to a property seller, with the remaining Rs 15 lakh paid by the buyer, constitutes a cash gift and explores potential tax consequences.

srinivasan ak

srinivasan ak (Querist)

20 March 2020 If a person supplies only taxable services ( not involved in supply of goods then is he eligible to opt for composition scheme under section 10(1) or he is eligible only under alternative composition scheme which talks about preceding year turnover
Limit of Rs 50 lakh
Please clarify

CA Anita Bhadra

CA Anita Bhadra (Expert)

21 March 2020 Eligible only for alternative composition scheme

srinivasan ak

srinivasan ak (Querist)

02 February 2021 Another query kindly clarify
X an individual wants to purchase a house property. Lets assume the purchase consideration is Rs.20 lakhs. The property has to be registered in X's name. X' father, from his bank account paid Rs.5 lakh directly to the seller. The remaining Rs.15 Lakh was settled by X from his bank account. Can X's father pay directly to the seller In order to fit this transaction as a cash gift ? Will it have any tax consequences?

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