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Rule of Composite Dealer

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This query is : Resolved

Anshuman Basu (Querist)
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18 February 2020 I have following question regarding Composition dealer:
1/ A Composition dealer (Service Provider) having turnover of less than 50 lakhs, can he opt Composition registration generate Tax invoice? What is the Tax rate? collect this 6% from his clients or should he pay from his own pocket?
2/ Can inter state billing is possible for him?
3/ whether he can provide any kind of service?
4/ Is RCM is applicable on Composition dealer if he purchase from UR Dealer?
4/ Is RCM is applicable on Composition dealer if he received services from GTA service provider both (Registered or UR party)?
5/ Can he take ITC?

CA Anita Bhadra

CA Anita Bhadra (Expert)
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19 February 2020 The composition dealer will issue a bill of supply and not a tax invoice.
He has to pay 6% out of his pocket.
Interstate trader can not opt for composition scheme.
RCM applicable for GTA services
The Composition dealer can not take ITC

He can provide services.
RCM from an unregistered dealer under sec 9(4) is applicable for any body.

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