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Which of the following persons CANNOT opt for composition under Sec 10(1)?
AA grocery retailer in Tamil Nadu
BA supplier dealing only in goods within Karnataka
CA small manufacturer of bakery products with Rs 80 lakh PY turnover
DA trader of pan masala
Answer & Solution
Correct answer: D. A trader of pan masala
1. Sec 10(2)(b) bars a supplier engaged in manufacture/supply of goods notified under Sec 10(2)(e) — pan masala is so notified.
2. Ice-cream, tobacco, aerated waters, fly-ash bricks etc. are similarly excluded.
3. The other three options describe eligible composition taxpayers.
_Source: ICAI BoS CA Final Paper 8, Ch 3 "Levy and Collection of Tax", §Sec 10(2)(b)_
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