Lion Traders, a registered dealer having stock of goods worth ₹60,000 purchased from outside the State, wishes to opt for Composition Scheme under the State VAT Act. Advise whether it is possible.
CS Professional · Advanced Tax Laws and Practice · PYQS · December 2016
Lion Traders, a registered dealer having stock of goods worth ₹60,000 purchased from outside the State, wishes to opt for Composition Scheme under the State VAT Act. Advise whether it is possible.
Answer & Explanation:
If a dealer wishes to opt for Composition Scheme, he should not have any stock of goods which are brought from outside the state on the day he exercises the option to pay tax by way under composition scheme. Hence, Lion Traders is not eligible to opt for composition scheme as it has goods worth ₹60,000 purchased from outside the state on the day it wishes to opt for the Composition Scheme.
Topics: Indirect Tax
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