The current state indirect tax regime has provided a simpler compliance for small dealers known as the Composition Scheme. Under this scheme you,
Pay taxes only at a certain percentage of turnover
File periodic returns only (usually on a quarterly basis)
Have an option of not having to maintain detailed records or follow tax invoicing rules
Are not allowed to take Input Tax Credit (ITC)
Are not allowed to collect tax on sales
Thus for smaller businesses, it is simpler to calculate tax liability. This saves time and energy involved in maintaining detailed records.
Let us understand how the composition scheme is different with the following example:
Composition Levy in the GST Regime
Similarly, the same benefit is provided under the GST regime. Small dealers and businesses could opt for the composition scheme known as Composition Levy. Under this scheme, a Composite Tax Payer pays tax only at a certain percentage of his turnover.
NE Including Sikkim – Aggregate turnover of the person having same PAN of above Rs 10 lakhs during the financial year but does not exceed Rs 50 lakhs.
Rest of India – Aggregate turnover of the person having same PAN of above Rs 20 lakhs during the financial year but does not exceed Rs 50 lakhs.
Rate of Levy
Rate of levy is yet be notified
Rate of levy will not be less than 1%
Conditions for a Composite Tax Payer
Apart from the threshold limit, the following conditions are applicable for a composite tax payer:
No Interstate supplies – A composite tax payer should not engage in interstate supply of goods and / or services and imports.
Payment of composition tax – If the composite tax payer is in the trade of supplying goods and services, then composition levy will be applicable for both supply of goods and supply of services.
Does not have to collect tax – The composite tax payer does not have to collect tax on all his outward supply of goods and / or services.
Applicable for all business verticals under the same PAN – Composition levy will be applicable for all business verticals operating within state or interstate under the same pan. What does this mean? An individual with different business verticals, like:
Mobiles & Accessories
In the above scenario, the composition scheme will be applicable for all three business verticals. The dealer cannot opt for any one business vertical to fall under the composition scheme. For example, if the business vertical’s place of business is in Karnataka & Kerala for a single PAN, each of the business vertical in that particular state should have only ‘Intra-State(within state)’ supplies.
Cannot claim Input Tax Credit – The composite tax payer is not eligible to claim input tax credit on all his inward supply of goods and / or services. What does this mean? If a dealer chooses to be a composite tax payer, he cannot claim input tax credit even if he makes taxable purchases from a regular taxable dealer. Ideally, the taxable amount would be added to the composite tax payer’s cost.
Return Forms for a Composite Tax Payer
A composite tax payer is required to file quarterly return and annual return. Types of returns and details to be furnished are explained below:
Details to be furnished
Auto-populated details of inward supplies made available to the recipient registered under composition scheme on the basis of FORM GSTR-1 furnished by the supplier.
18th of succeeding month
All outward supplies of goods and services including auto-populated details from Form GSTR-4A and tax payable details. Details of any additions, modifications, or deletions in Form GSTR-4A should also be submitted in Form GSTR-4.
31st December of next fiscal
Consolidated details of quarterly returns filed along with tax payment details.
In the current composition scheme, a composite dealer has to declare only the aggregate turnover of sales. He is not required to declare invoice wise details. In GST, the composite tax payer will file his returns with the invoice wise details of inward supplies which is auto-populated based on Form GSTR-1 filed by his supplier along with the aggregate turnover of outward supplies
Earlier , there was only one section code 94I for TDS on Rent. While preparing TDS return, 94I code was selected for deduction of TDS from Rent. But now there are two section codes in the Name 4IA or 4IB which have been replaced with 94I. 4IA :- 4IA code will be selected when 2% TDS will be deducted for the use of any machinery or plant or equipment 4IB :- 4IB code will be selected when 10% TDS will be deducted for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings
Keeping in view the confusion in selection 4IA or 4IB, detailed Section 194-I is given below in the interest of deductor :-
79194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to 80[a resident] any income by way of rent81, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cas…
Jai Jinendra Ji,
Now, e-booking of rooms are available for Shri Mahaveerji, Karauli, Rajasthan. It is religious place for Jain's. Every Jain wants to visit once in his life. There are too many persons who visit here once in a month or in a week. There are numbers of Jain Temples. Shri Mehendipur Balaji is just away 35 K.M. from here via Nangal village. 50% of available rooms are available through e-booking. Tariffs & Policies are given as under :-
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Friends, It is great problem when we need .rpt files in .xls. Sometime back I had received .rpt files from Punjab National Bank as Bank Account Statements for a particular account. I had tried to convert in excel, but after devoting 4 hours, I got fail in conversion. In last I tried following steps and got success. Open .rpt file in Notepad.File Save as in .txt file (as shown in above picture)Open with .txt file in Microsoft Excel.Option "Text to Coloumns" > Fixed >Finish. then Save File in excel.