Compliances Related to Composition Scheme
A normal taxpayer is required to submit a minimum of three returns on monthly basis and one yearly consolidated return i.e. 37 returns in a whole year; non-filing of which will attract penalty. Under the scheme a taxpayer is required to file one return in each quarter, they need not worry about record keeping and focus more on his business.
Since a scheme holder is not required to pay taxes at regular rates, he is not liable to issue a tax invoice; rather the scheme holder should issue a Bill of Supply making this a more convenient option for SMEs.
