Not eligible for composition scheme but eligible for notification no-2/2019 dated 7.3.19

Who are the person not eligible for composition scheme but eligible for notification no 2/2019 dated 7.3.2019? 

 

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Quick Summary
This discussion clarifies eligibility for Notification No. 2/2019 for taxpayers not qualifying for the composition scheme. Generally, service providers with an aggregate turnover below ₹50 lakh in the preceding financial year, excluding interest income, are eligible. This notification offers a concessional tax rate. The discussion also addresses how to calculate turnover thresholds when businesses are registered under the same PAN across different states.

Option to pay tax at concessional rate [NN 2/2019, CT(R), 07.03.19]

Eligibility:

  • aggregate turnover in preceding FY <=50 lakh
    (In this threshold, interest income from loan/deposits will not be considered)
  • not eligible for composition scheme
  • engaged in supply of service, other than restaurant service

Composition Scheme Check:

  1. For manufacturers (except notified goods), restaurant service and supplier of goods (1.5 Crore)
  2. If providing services, other than restaurant services, then check marginal threshold
  3. If out of above two, then check whether eligible for concessional rate notification

basically person who are not eligible for the Composition Scheme u/s 10 

then he may opt for the N/N 2 / 2019 

 

Roughly speaking then it is for service providers . 

Please  enlighten me-For example I'm newly registered under composition scheme.The office located is in delhi another office is in Meghalaya. Which will the threshold limit  be applicable in this case ? 75 laks or 1.5 crore? 

Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover.
Is the registered office with same PAN ?

Yes  registered under the same PAN

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