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Tax under section 10 or notification 2/2019
I am into a business of supplying goods & services both. My turnover of previous FY consisted of Rs. 42 lacs by supplying goods and Rs. 15 lacs from supplying services. Can I opt for paying tax under section 10 (Composition) or paying tax at concessional rate @ 6% (notification 2/2019)?
Replies (4)
As supply of services is exceeding 10% or 5 lakh limit. you should go for 2/2019
But 2/2019 is upto 50 Lacs only.... & I think its only for service provider & not for supplier of goods & service both
Yup in this case it exceeds the limit. but as far as I read no where it's written we cannot supply goods
No you cannot opt for Composition scheme.
As per the 2nd Proviso under section 10(1) (c) , may supply Services of value not exceeding 10% of Aggregate turnover in preceding FY or 5 lac whichever is Higher , so if in current Fy or when you opt for the said scheme your supply of Service turnover shall not be more then 5 lac , else need to furnish CMP 04 (withdrawal from Composition).
As per sub clause (2A) of Section 10 , inserted by Finance (No.2) Act 2019 , the registered person not eligible to opt for scheme whose turnover in preceding FY more then 50 lac , hence You can cannot opt for the same .
(Note : Notification 2/2019 CT (r) prescribe supply of Goods or Services or both)
As per the 2nd Proviso under section 10(1) (c) , may supply Services of value not exceeding 10% of Aggregate turnover in preceding FY or 5 lac whichever is Higher , so if in current Fy or when you opt for the said scheme your supply of Service turnover shall not be more then 5 lac , else need to furnish CMP 04 (withdrawal from Composition).
As per sub clause (2A) of Section 10 , inserted by Finance (No.2) Act 2019 , the registered person not eligible to opt for scheme whose turnover in preceding FY more then 50 lac , hence You can cannot opt for the same .
(Note : Notification 2/2019 CT (r) prescribe supply of Goods or Services or both)
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