What are the drawbacks of opting for the composition scheme with regards to No collection of Tax?
What are the drawbacks of opting for the composition scheme with regards to No collection of Tax?
Chiranjibi Jul. 17, 2018
Though the rate of composition tax is kept very nominal at 0.5%, 1% or 2.5%, a taxpayer under composition scheme is not allowed to recover such tax from his buyer, as he is not allowed to raise a tax invoice.
Consequently, the burden of such tax is kept on the taxpayer himself and this has to be paid out of his own pocket.
