Section 10(1) defines the eligibility for those who want to register under composition scheme. there are three categories under it
a) Manufacturer 2%
b) Normal traders 1%
c) Restaurants 5%
now let me give a practical scenario of sweet shop.
he is a manufacturer, he sells his sweets so he is also a dealer and as he serves the sweets on his shop so technically it is also a restaurant.
now he is engaged in all three activities now question arises under what rate of tax he shall be considered 1,2or5?
please try to answer with some reference not what u believe or u think.
CAclubindia
