COMPOSITION SCHEME

Dear sir,

     You have not eligible if you lie below conditions.

1. The person opting for the scheme must neither be a casual taxable person nor a non-resident taxable person.
2. The goods held by him in stock on the appointed date must not be purchased from a place outside his state. The goods should therefore not be classified as:

• Inter- state purchase
• Imported Goods
• Branch situated outside the State
• Agents or Principal situated outside the State

3. Where the taxpayers deals with unregistered person, tax must be paid or no stock must be held

5. Mandatory display on invoices of the words ” composition taxable person, not eligible to collect tax on supplies”

6. Mandatory display of the words “Composition Taxable Person” on every notice and signboard displayed at a prominent place.