Question

How to convert compostion tax payer to casual tax payer?

Answer 1

· The tax payer will also have the option to extend the registration duration once for a ... a casual taxpayer is not allowed to opt for the composition scheme

Answer 2

Answer:

1. INTRODUCTION

Casual taxable person means a person who supplies taxable goods or services occasionally in a taxable Territory where he does not have a fixed place of business. The person can act as a Principal or agent or in any other capacity supply goods or services for the furtherance of business

Explanation:

2. REGISTRATION

The liability to register under GST arises when the person is a supplier and the aggregate turnover in the financial year is above the threshold limit of 20 lac rupees. However, there are certain categories of suppliers who are required to get compulsory registration irrespective of their turnover. The threshold limit of 20 lac rupees is not applicable to them. One such supplier would be a Casual Taxable Person (hereafter referred as CTP). A Casual Taxable person cannot opt for Composition Scheme.

A CTP has to obtain a Temporary Registration which is valid for a maximum period of 90 days in the State from where he seeks to supply as a Casual taxable person. A CTP is required to make the advance deposit of GST (based on an estimation of tax liability).

Let’s take our previous example,

Say Mr.Ravi estimates his taxable services at Rs. 100000. He is required to make an advance deposit of Rs.18000 (18% of Rs.100000) to obtain temporary registration.

4.EXTENSION OF PERIOD OF REGISTRATION

Apply in FORM GST REG-11 before the end of validity of registration. An extension can be made for a further period not extending 90 days. The extension will be allowed only on deposit of additional tax liability for the extended period.