If one composition dealer named X sells goods to another composition dealer named Y, Will Y has to pay tax @ 1% (as per composition scheme) or at full rate of tax i. e. 18%? What provisions are applicable in this case?
(In my opinion both are registered dealers and if materail is purchased from any registered dealer, no tax is payable under RCM. Hence Y has to pay tax @ 1% i. e. normal rate under composition scheme.)
One more scenerio, What if Y is regular dealer, Will he be able to availe ITC?
What's the opinion of other members on this?
CAclubindia
