my client is paying tax under compositon and he , after purchasing capital goods , enter into partnership . The firm wants to take credit of said input tax credit by endorsing the purchase bills. can firm eligible take credit of input tax paid by the composition dealer ?
Menu
Input tax on capital goods
Replies (4)
Mr Ramakrishna
Under composition scheme, the registered dealer is NOT allowed to issue Tax Invoice. Further, No tax credit is permitted to be claimed on purchases.
DEAR HARI,
WHAT IS UNDER COMPOSITION?
ADVANCE THANKS
Dear Mr Vinoth
The term "Under Composition" means a dealer who has opted to register himself under the composition scheme with the VAT deptt.
One of the conditions of compositon tax is that the dealer cannot take input tax credit , and he shall not purchase goods form interstate
Recent Topic
- Issue with ITR2 online utility for HUF
- TDS deducted by EPFO under wrong section
- Schedule SI in ITR-2
- What is the easy way to do CA- through foundation
- Schedule FA query for this AY 2026-27
- Business income source for husband and wife
- Set off of LTCL against STCG under section 536(2n)
- Audit Workflow tool
- Is CA through direct entry easy for a commerce stu
- Dividend and withholding tax - DTAA- RSU
Related Topics
CAclubindia
