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Solve my problem

Others 228 views 3 replies

NIKITEJ Chary

CA Final

3 Points Posted on 13 May 2021

Jewellery business eligible for composition scheme @ 1% (intrastate) or should I register for regular @ 3%. Cilent is willing to bear extra 1% burden and turnover is less than 75 lakhs.

All are saying difference in opinion .

Please solve my query.

Thank you.

Replies (3)

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 13 May 2021

The jewellery business should be opt for composition scheme at the rate of 1%

Making charges with sale of jewellery are taxable @ 1% ? and making charges is consider as supply of service should I consider in limit 10% of turnover in preceding financial year or 5 lakhs which ever is higher as per 10(2) ?

Navin Agarwal

354 Points Posted on 15 May 2021

In my opinion, making charges with jewellery is a composite supply under 2(30) read with section 8 where jewellery is the principal supply and hence I guess the entire arrangement should be viewed as goods!