Merits of the Composition Scheme
Below are some of the prominent reasons why you should choose to get registered as a supplier under the composition scheme:
*Limited Compliance: Lesser compliance w.r.t. furnishing of returns, maintenance of books of records, issuance of invoices more focus on business.
*Limited Tax Liability: on comparison with regular taxpayers, person taxed under Composite Scheme will be liable to pay tax at a rate not less than 2.5% for manufacturer and 1% in any other cases instead of a standard rate of 18%.
*High Liquidity: Unlike normal tax payers, tax payers under Composite Scheme will be liable to pay taxes at a lower rate resulting in lesser chunk on his working capital.
