Composition Scheme for Service Providers

Please let me know  if Composition Scheme can be availed  by Service Providers who offers service in Delhi and Gurgaon.

Replies (2)
Quick Summary
This discussion clarifies the eligibility of the Composition Scheme for service providers, specifically those operating in Delhi and Gurgaon. While generally restricted to restaurant services, service providers can opt in if they meet specific conditions. These include not supplying services interstate, having an aggregate turnover below £50 lakh in the preceding financial year, and not supplying non-taxable goods or services. The applicable tax rate under the scheme is 6% of turnover.

Service provider can not opt composition scheme except Restaurant Services
As per Sub Section 2A of Section 10 , the service provider can opt for composition scheme (Notification 2/2019 CT(r) .
But the condition for the eligibility is :
1.Cannot supply Interstate.
2. Whose aggregate turnover preceding Fy is below 50 lac.
3. Cannot supply Non taxable goods/services.

Hence in your case if you are doing Interstate supply cannot opt for the same.

Rate : 6% on turnover

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