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Transition from Composition to Normal

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Umang Raj

Chartered Accountants

79 Points Posted on 28 November 2020

1.how to pay tax upto the date of conversion?
shall we file CMP 08 for paying tax and it shoud be filed before CMP 04.

2. In form ITC 01 invoice particulars are to be filled for the whole amount of invoice or the amount out of total invoice amount which is still remaining in closing stock.

Replies (3)

Quick Summary

This discussion clarifies the process for businesses transitioning from a composition scheme to the normal tax scheme. It explains that CMP-08 should be filed to pay tax for the quarter of conversion, followed by CMP-04 for formal withdrawal. For claiming Input Tax Credit (ITC) on closing stock, form ITC-01 needs to be filed separately, detailing only the goods currently in stock, not the entire invoice particulars.

CA Mayank A Jain

Chartered Accountant in Practice

1260 Points Posted on 28 November 2020

The quarter in which the conversion took place - CMP 08 has to be filed.

CMP-04 is only for intimation for withdrawal of composition scheme.

ITC-01 is required to be filed separately for availing ITC pertaining to closing stock. All details of the invoice is not required to be considered. Only details of goods lying in stock is required to be furnished in ITC-01.