composition scheme

[d.v. gupta]

sir,

A dealer is registered under Dvat acat as well as CST act. dealer is a civil contractor and doing contract of govt. only. Can dealer opt coposition scheme of 3% despite having central sales tax registration.

[sanjay pandey]

Composition scheme is applicable for local dealer only who purchase and sale the goods within the state. So, CST registration is not require but if dealer the have CST registration then they take some precaution like not made any inter state transaction.  

AI Summary

Composition scheme: local dealers may opt only if transactions remain intrastate; CST registration requires avoiding interstate sales. The composition scheme is available only to local dealers whose purchases and sales are intrastate. CST registration does not by itself prevent opting for the composition scheme, but a dealer holding CST registration must avoid any inter state transactions to remain eligible.