MY CLIENT IS IN COMPOSITION SCHEME IF HE GET RENT INCOME WHAT IS TAX RATE ON RENT INCOME.
Reply—
As per CGST (amendment) act, 2018 (w.e.f. 01.04.2019) composition dealer (supplier of goods) may supply services of value not exceeding ten per cent of turnover in a State or Union territory in the preceding financial year or Five lakh rupees, whichever is higher. Rate of tax (1%) will be applicable on sale of goods as well as on supply of services.
However if value of supply of service will be more than 10% of turnover and value of such service also exceeding Rs. 5 lakhs, the taxpayer would not be able to continue his registration as a composition dealer, he will be required to opt out from the scheme.
Posted Date: Jan 16, 2020