Chart 5- Composition Levy

Question 1

T. O limit

Answer 1

Goods
-ATO <= 1.5 Cr
Special category states <= 75 lakh

Services
- ATO <= 50 lakh

Panwise @ all India basis to opt together

Question 2

10(1)

Answer 2

Manufacturer 1% of T.o
Restaurant services 5% of T.o
Trader 1% of Taxable T.o

Own obligation, cannot collect from customers

Question 3

10(2) ineligible

Answer 3

MINES

Manufacturer of notified goods

Interstate outward supplier

Doesn’t supply non taxable goods/ services + NRTP/CTP

Supplying goods/ services through ECO

Service providers except restaurant/ catering & providing upto 10% of T.O (or) 5 lakh w.e. higher

Question 4

Sec 10(2A)

Answer 4

Services
ATO<= 50 Lakh

Pay = 6% of T.o