TMI BlogComposition SchemeX X X X Extracts X X X X X X X X Extracts X X X X ..... Our client has exempt turnover of ₹ 30 lakhs in FY 2021-22 by way of rent from residential property and taxable turnover of ₹ 5 lakhs by way of management consultancy services. As per our understanding he is required to take registration. Would he be eligible for the composition Scheme and if so whether composition tax is to be paid on , - Reply By KASTURI SETHI - The Repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y = As per Section 10(2)(b) of CGST Act , your client is not eligible for composition scheme. - Reply By Shilpi Jain - The Reply = Section 10(2)(b) may not get attracted since renting of residential property is leivable to tax but exempt. In case you opt for composition scheme in this case, you may become liable to pay GST on the exempt turnover also. So you are eligible to opt but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... do a cost benefit analysis and then proceed. - Reply By Lalitha Krishnamurthy - The Reply = Thank you Mr. Sethi and Ms. Jain for your advice. Regards. - Reply By KASTURI SETHI - The Reply = Not eligible for composition scheme. One has to go deep into the legal and literal meaning of both words 'leviability' and 'non-leviability' and scope of both words/terms. Exempt i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s one of the 'ways' or 'methods' for not collecting tax. Non-leviability includes exempt also. Both are not exclusive. In this scenario , that benefit or relaxation is not available. - Reply By KASTURI SETHI - The Reply = Just for additional knowledge To know the exact meaning and message of any word one must go through synonyms and antonyms of that word. Literal meaning of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any word is the basis of that message. Dictionary meaning of any word cannot be ignored. - Reply By Amit Agrawal - The Reply = In my humble view: 1. Your client is not eligible to opt for composition scheme u/s 10 (1) of the CGST Act, 2017 due to restrictions by clause (a) of sub-section (2) of Section 10 . 2. Your client is eligible to opt for composition scheme u/s 10 (2A) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CGST Act, 2017 . 3. If option under above Para 2 is chosen, your client needs to taxes @ 6% (i.e. 3% +3%) against management Consultancy services of ₹ 5 Lac. However, this is subject to the presumption that this supply took place after exhausting limit of 20 Lac aggregate turnover from exempt supply by way by way of renting of residential property. 3A. If option under above Para 2 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chosen and in my personal view, your client need not pay taxes @ 6% (i.e. 3% +3%) against exempt turnover of ₹ 30 lakhs by way of renting of residential property. All above are strictly my personal views and same should be construed as professional advice / suggestion. - Reply By Amit Agrawal - The Reply = Correction in last line of above post...... Please read it as follows: All ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above are strictly my personal views and same should not be construed as professional advice / suggestion. - Reply By Michael Smith - The Reply = A service provider can opt for Composition scheme with effect from 1st day of April 2019, with turnover of up to Rs. 50 lakh in the previous financial year. A Service providers who have opted for composition scheme are required to pay GST at th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e rate of 6%. Scheme - Composition Scheme - Query Started By: - Lalitha Krishnamurthy Dated:- 30-3-2022 Goods and Services Tax - GST - Got 8 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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