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

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shilpi

student

423 Points Posted on 18 April 2020

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

Replies (6)

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.

Deepak Gupta

CA Student

8353 Points Posted on 18 April 2020

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:

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

CA Naveen Chand

Chartered Accountant

8022 Points Posted on 19 April 2020

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 .

shilpi

student

423 Points Posted on 04 May 2020

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?