What is Small tax payers under Indian Tax
This post explains about Small tax payers under Indian Tax.
Small Tax Payers
Small tax payers means tax payers who opts to pay tax on sales at a fixed rate, generally lower rate of tax but not claiming input tax on inputs.
Small tax payers mean tax payers who opts for Composition Levy Scheme for payment of taxes.
Composition Levy Scheme
- Pay an amount in lieu of tax; minimum rate to be:
- 2.5% of the turnover in case of manufacturers;
- 1% of the turnover in other cases
- No tax to be collected; No Input Tax Credit available
Conditions for Composition:
- Permission of Proper Officer required
- Registered persons
- Aggregate Turnover < Rs. 50 Lakhs (all-India basis for taxable persons having same PAN – who shall also opt for composition) but excludes Sch III & IV
- Aggregate turnover = Value of all supplies (taxable + non-taxable + exempt + exports) – Value of (RCM supplies + inward supplies) – taxes under GST
No composition option in the following specific cases:
Services supplied:
Any/ all services (includes goods treated as supply of services by Sch II)
Goods supplied:
I. Non-taxable goods
II. Inter-State outward supplies
III. Through e-commerce operators
IV. Notified goods manufactured by the supplier
If aggregate turnover (all India basis) of preceding FY exceeds 50 Lakhs (If during the FY, the aggregate turnover exceeds 50 Lakhs, no composition from the following day.)
The information on Small tax payers under Indian Tax is detailed above. Comment below your thoughts on Small tax payers under Indian Tax.
Learn Exports Imports Free, Click here
Click here to know GST rate of your goods or service
Is GST registration required for a public sector undertaking?
Is amendment of GST registration allowed in India?
Cancellation of GST registration in India
Centralized GST registration of services permitted in India?
Retired from business ownership. Fresh GST registration in India?
GST Registration for Job workers in India
GST registration mechanism in India
Pre-registration of credit card necessary for GST payment in India
Is GST Registration required for a Job worker in India?
Unique Transaction Reference number (UTR) Means
Term Treatment for Zero Rated Supplies under GST
Transportation of goods without issue of invoice under GST
Meaning of Transitional arrangements for ITC under GST
Transition provisions under GST
Term Transition credit under GST
Who receives the amount of auctioned / resold imported unclaimed/un-cleared goods?
Why demurrage/detention waiver period is required at destination for import
Why do carriers balance weight and volume while charging freight amount in Exports?
Why does Palletization require?
Why labeling and marking in Export business?
The term FCL. What is FCL means
The term LCL. What does LCL mean?
Tips to exporters on Documentation
How does First Appraisement system of import customs clearance procedures work?
How does Letter of Credit work?
How does STP units work in India?
How does TT (Telegraphic Transfer) work?
How does Wire transfer work in international business?
Documents required for Export from Paraguay
Customs procedures for Paraguay Export
Registration required to export from Paraguay
Documents needed for Paraguay import
Import Customs processes in Paraguay
Import Registration and import Licence procedures in Paraguay
How to export from Papua New Guinea?