composition dealer u/s 10

[Asked by Guest]

whether composition dealer can purchase goods from another composition dealer or not. if yes what will be the effect of that transaction in the hand of recepient composition dealer?

[KASTURI SETHI]

There is no such restriction. Restriction is regarding inter State sale.No adverse effect. Both buyer and seller cannot take ITC.

[Himansu Sekhar]

You are correct sir

[Kishan Barai]

Yes a Composition Scheme Dealer enjoy buying from another dealer but under reverse charge mechanism if goods purchase value is 5000 on per day basis from that particular dealer

[DR.MARIAPPAN GOVINDARAJAN]

A person opting for composition levy can purchase goods from another person opting composition levy. There is no effect in the hand of recipient of the person opting for composition levy.

[Ganeshan Kalyani]

In my view if a composition dealer purchases from another composition dealer, then there is tax to be paid by recipient of goods or service under reverse charge.

[vk agarwal]

agree with Mr Govindarajan

[subramanian vijayakumar]

Yes it has no impact both. Could not take itc

AI Summary

Composition scheme purchases allowed but do not permit input tax credit, and may affect inter-state sale treatment.
Composition scheme dealers may buy from other composition scheme dealers; such transactions are permitted but neither party can claim Input Tax Credit. Contributors noted a caveat about inter-state sale restrictions affecting composition treatment, and one respondent asserted that reverse charge may apply in certain supplier-specific purchase thresholds.