A
They are exclusively meant for large multinational corporations operating across multiple states.
B
They are allowed to pass on input tax credit to their registered buyers.
C
They pay a fixed turnover tax rate without availing input tax credit.
D
They are exempt from filing any annual returns with the central tax authorities.
Correct answer: (c) They pay a fixed turnover tax rate without availing input tax credit.
Explanation
Option C is correct as composition scheme taxpayers pay a flat fixed rate on their turnover and cannot claim input tax credit. Option B is wrong because composition dealers cannot pass on credit. Option D and D are incorrect descriptions of the scheme's applicability and compliance nature.
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