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COMPOSITION SCHEME

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7 Points Posted on 28 July 2017
In a Composition Scheme there is a provision which said that on the day of exercising the composition schemes dealer do not hold interstate purchase stock and on the other hand which contradicts that in Composition Scheme Interstate Purchase is allowed.. WILL ANYONE TAKE ME OUT WITH THIS CONTRADICTION ?

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On 28 July 2017 at 17:11 Report
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2 Points Posted on 28 July 2017
interstate purchase is allowed... but interstate sale is not valid under composition scheme
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On 28 July 2017 at 17:25
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7 Points Posted on 28 July 2017
I knew that sir that Interstate sale is prohibited in this scheme. My question is on the one side a dealer do not hold Interstate Purchase stock on the day of exercising the composition schemes and on the other hand Interstate Purchase is allowed under this scheme. SO HERE I M CONFUSED WITH THIS CONTRADICTION.
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On 28 July 2017 at 17:35
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1518 Points Posted on 28 July 2017
In Composition scheme intra state business allowed
So when you purchase inter state stock you not paid tax
Now if you sale that stock you skep from paying tax which is loss to govt
That's why inter state stock not allowed in composition
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On 28 July 2017 at 20:58
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7 Points Posted on 28 July 2017
Sir i didn't get you ? Suppose before opt for Composition Scheme if i had intersate purchase stock on which i had paid CST. And now onwards when i sale those stock i can't charge tax from the buyer. So where is the loss to govt.
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On 28 July 2017 at 22:14
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1518 Points Posted on 28 July 2017
When you purchase stock you paid only cst not other tax paid
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On 28 July 2017 at 22:34
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7 Points Posted on 29 July 2017
Sir if you do so please kindly leave with an Practical example. Because it still makes me in a confusing in this regard. Thank you in advance.
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On 29 July 2017 at 11:20


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