TaxTMI 
TaxTMI 
Is outdoor catering service covered under Sch II 6(b) and eligible for Composition scheme U/s. 10?
composition scheme
29 Apr 2019 
5 Replies 
1871 Views Asked by
Composition scheme eligibility for outdoor catering depends on treating food supply as a composite service under Schedule II.
Whether outdoor catering falls within Schedule II paragraph 6(b) and thus qualifies for the composition scheme under Section 10 is addressed. Section 10 allows eligible small taxpayers to pay tax at prescribed concessional rates; Schedule II(6)(b) treats supply of food or drink supplied as part of a service as a service. Commentators note the legal distinction between composite supply and the statutory composition scheme, but conclude outdoor catering is covered by Schedule II(6)(b), subject to turnover and scheme conditions. (AI Summary)
Whether outdoor catering falls within Schedule II paragraph 6(b) and thus qualifies for the composition scheme under Section 10 is addressed. Section 10 allows eligible small taxpayers to pay tax at prescribed concessional rates; Schedule II(6)(b) treats supply of food or drink supplied as part of a service as a service. Commentators note the legal distinction between composite supply and the statutory composition scheme, but conclude outdoor catering is covered by Schedule II(6)(b), subject to turnover and scheme conditions. (AI Summary)