COMPOSITION LEVY

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69 Points Posted on 06 January 2021
A HOLDING COMPANY IS INTO NORMAL GST SCHEME AND PROVIDING CONSULTANCY SERVICES TO CLIENTS. (GST IS 18%).

THEY WANT TO CREATE A 100 % SUBSIDIARY COMPANY AND OPT FOR COMPOSITION LEVY FOR SUBSIDIARY COMPANY. (GST IS 6%)

IS IT POSSIBLE ?

THANKS IN ADVANCE
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On 06 January 2021 at 08:43 Report
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A holding company operating under the normal GST scheme (18%) is considering setting up a 100% subsidiary. They wish for this subsidiary, with a different PAN, to opt for the composition levy (6%). The discussion confirms that this is permissible, as the subsidiary will be a distinct company with its own PAN, even if the directors are the same.

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378 Points Posted on 06 January 2021
Provided subsidary company is under different PAN
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On 06 January 2021 at 09:38
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69 Points Posted on 06 January 2021
Thanks for the reply Sir

It is submitted that the new company will form and it will be a distinct company and it will have new PAN.

Directors will be same
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On 06 January 2021 at 09:53
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378 Points Posted on 06 January 2021
No issues in this case
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On 06 January 2021 at 11:17
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69 Points Posted on 06 January 2021
Thanks Sir
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On 06 January 2021 at 12:05

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