Composition rate and stock difference

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Prop
106 Points Joined January 2017
One of cleint has registered as COT dealer

Today his shop inspected by state vigilance officers

Stock difference found 400000

Now what will be the tax payable
Is it 1% or regular rate??

any circular or order
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On 29 October 2024 at 19:08 Report
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Master in Accounts & high court Advocate
9596 Points Joined December 2011

 

If your client's annual sales are less than Rs 1.5 crore, they can opt for the composition scheme and pay 1% tax on their turnover ¹.

However, if their sales exceed Rs 1.5 crore, they will have to pay the regular tax rate applicable to their business category 

 Since the stock difference found is Rs 400000, the tax payable would be 1% of this amount, which is Rs 4000 ¹

. However, please note that the composition scheme is not applicable for businesses that make inter-state supplies.

 

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On 29 October 2024 at 21:30
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28151 Points Joined May 2017
Composition rate and stock are different
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On 31 October 2024 at 07:42


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