TaxTMI 
TaxTMI 
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?
composition dealer u/s 10
20 Jul 2017 
7 Replies 
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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. (AI Summary)
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. (AI Summary)