Shrinivas & Sons, a partnership firm, based in Nagpur, Maharashtra is a wholesaler of a taxable product 'X' and product 'Y' exempt by way of a…

The view taken by the accountant of Shrinivas & Sons is not valid in law. A registered person with an aggregate turnover in a preceding financial year up to 1.5 crore is eligible for composition levy in Delhi. Further, such person must not be engaged in making any supply of goods or services which are not leviable to tax under this Act and must not be engaged in making any inter-State outward supplies of goods or services, for being eligible to pay tax under said scheme. In the given case, the aggregate turnover of Shrinivas & Sons does not exceed - 1.5 crore. Further, it is engaged in making only intra-State supply of goods and Product X supplied by it is taxable and Product Y supplied by it is leviable to tax, though exempted by way of notification. Therefore, it is eligible for composition levy in the current year.