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Composition scheme

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purusharth pandey

5 Points Posted on 26 June 2020

can a newly formed business entity get registered ,for the very first time, under composition scheme, as there is no preceding financial year turnover because business entity was not in existence in preceding financial year?

Replies (5)

Quick Summary

Yes, a newly formed business entity can register for the Composition Scheme even if it has no preceding financial year turnover. The key is that the projected aggregate turnover for the current financial year must not exceed the prescribed limits. These limits are typically Rs. 1.5 crores for goods, Rs. 75 lakhs for special category states, and Rs. 50 lakhs for service providers. Additionally, the business must not be involved in inter-state supply of goods or exempted goods.

Shivam RC

Student

23693 Points Posted on 27 June 2020

Yes a newly formed business entity can opt for Composition Scheme if the person is of the view that his Aggregate Turnover during the year does not exceeds the prescribed limit i.e. Rs. 1.5 crores ( Rs. 75 lakhs incase of Special Category States ) and Rs. 50 lakhs in case of Service Provider.

harini saha

Student CMA

90 Points Posted on 27 June 2020

1.There aggregate turnover should be less than or equal to 1 cr during Py
2.Current year turnover should be less than or equal to 1.5 cr
3.special states - current year turnover should be less than or equal to 75 lacs
4.service provider - current year turnover should be less than or equal to 50 lacs
5.should not enter into inter state supply of goods
or 6. expemted supply of goods

sabyasachi mukherjee

Profession

28267 Points Posted on 27 June 2020

A newly formed business can be registered with composition scheme for the first time.
Aggregate turnover as per the pescribed limits of Rs.1.5 cr.
service-50 lakhs...