Application for the F.Y. 2006-07 was to be filed before 31-5-2006 in Form 210 and permission for the same will be granted if the dealer is not engaged in the activity of Inter State Sale or Purchase, Transfer from/to Branch/Agent, Import, Export, Sales/Purchases through Agent, Works Contract, Leasing and Manufacturing activity other than notified manufacturing activity. The permission is granted in Form 211 within 15 days from the date of application. Application for permission for subsequent year is required to be made before 30th April of the relevant year. Newly registered dealers have to file application within 90 days from the date of registration. W.e.f. 1-4-2008, a dealer who is granted permission to pay Lump Sum Tax, need not file fresh application for renewal of permission every year.
Composition scheme is subject to above conditions and if your both Company is Manufacturing then you can not avail benefit of Composition scheme.