EXAMPLE-93

M/s XYZ doing business of mobile phones, accessories of mobile phones, readymade garments and electronic goods under different business entity.  The firm's aggregate turnover of all supplies of business vertical of preceding year is below 75 lakh.  M/s XYZ has taken registration separately for his business vertical and desired to take composition scheme only for the business vertical of mobile phones. Determine whether person can take compounding registration for segment of mobile and normal registration for other segments.

Answer

Proviso to section 10(2) provides that where more than one registered person are having the same PAN , the one registered person shall not be eligible to opt for  composition scheme. all such registered entities will have to opt to pay tax under this scheme.

In view of the above provision M/s XYZ is required to take registration for his all business vertical as compounding dealer.