A client run a nbfc provide loan to other for which the income is generated in form of interest and also some time some other charges are also received other that int income if anyone default in emi.
Want two clarification :
- can they opt composition 6 % for service provider ( assumed limit 50 lakh ) ?
- If yes , how the tax 6 % of turnover be calculated ? Will the exempted service like int will also charged to tax in composition levy ?
Frah Saeed Answered question September 8, 2020
Dear Gagan,
Yes, why not.
As rate of tax is 6% of turnover in State, the exempt supply will also be taxed.
In my view not a wise decision to opt for composition levy for NBFC.
Team Clearmytax.in
Frah Saeed Answered question September 8, 2020