Dealer trading a ice cream parlour. selling of ic creams ( Not manufacturing unit ) to consumers in dealer registered place.
Question:
1. Dealer composite scheme registeration eligible or not.
2.tax payment rate 1% or 5% applicable on sales turnover.
Frah Saeed Answered question May 15, 2020
Great question..
Composition scheme can be availed as prohibition is only on manufacturers of ice cream.. As regards rate is concerned there is a very thin line. In cases where packed ice creams are sold there should be no dispute and 1% should apply. However where ice cream is being customized and served alongwith some other items also, then it may be regarded as restaurant and accordingly 5% rate shall apply.
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Frah Saeed Answered question May 15, 2020