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Composition scheme eligible and taxable or exempted

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Kollipara Sundaraiah

B.com

3025 Points Posted on 26 March 2023

A registered composite scheme dealer outward supply details mentioned below
1.sales of medicines for business rs:80 lacs yearly tax 1 precentage pay
2.sec 194j fees and technical services income rs:30 lacs .
3.rents from shops rs:3,60,000/-
4.agrilculture income rs:2 lacs.
5.interest income from partnership firm rs:3 lacs
question:
dealer opt composition scheme eligible or not
2.sec 194 j fees income and interest income taxable or exempted.
3.agrilculture income exempted turnover show in compulsory in returns.

Replies (2)

Quick Summary

This discussion clarifies the eligibility of a composite scheme dealer based on their outward supply details. It addresses whether professional fees and interest income are taxable or exempt, and confirms that agricultural income is exempt. The key takeaway is that certain business activities may disqualify a dealer from the composite scheme.

Pankaj Rawat

GST Practitioner

55067 Points Posted on 26 March 2023

1. No cannot carry business under Composition scheme: Reference 2nd proviso under Section 10(1) of CGST Act.
2. Yes taxable Except interest income.
3. Agriculture income exempted.