Composition scheme - very urgent please help

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Shakthi

Shakthi

(Querist)

02 October 2017 Dear Experts

Can a dealer who annual turnover is less than Rs 50 lakhs opt for Composition scheme. He is also running a poultry farm where he raises and sells chicken on contract basis.( Poultry farm is exempt but whether running it on contract basis will be a service and because a service is involved, will he be ineligible for composition scheme)

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 October 2017 Yes he will be ineligible to opt for composition scheme in view of providing service of contract farming.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

02 October 2017 Not eligible as providing service also.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

31 October 2026 Under current law the services income no longer automatically bars composition: from 1 February 2019 a composition dealer may supply services up to 10% of State turnover or Rs 5 lakh, whichever is higher, and a pure service provider can opt for Sec 10(2A) at 6% if turnover is up to Rs 50 lakh.

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