10 Questions
What is the definition of composite supply?
Under composite supply, two or more taxable supplies of goods or services or both, or any combination thereof, are naturally bundled and supplied in conjunction with each other, in the ordinary course of business, one of which is a principal supply.
When do supplies qualify as 'composite supply'?
Supplies qualify as 'composite supply' when they are naturally bundled and supplied in conjunction with each other, in the ordinary course of business, one of which is a principal supply.
Are the supplies of breakfast and dinner with accommodation in a hotel considered as composite supply?
Yes, the supplies of breakfast and dinner with accommodation in a hotel are considered as composite supply because they are naturally bundled.
What is the difference between composite supply and mixed supply?
In composite supply, two or more taxable supplies are naturally bundled and supplied together, with one being a principal supply. In mixed supply, two or more taxable supplies are provided together for a single price, but they do not amount to composite supply.
Are the supplies of toothbrush along with toothpaste considered as composite supply?
No, the supplies of toothbrush along with toothpaste are not considered as composite supply because they are not naturally bundled.
Which one of these is NOT a requirement for supplies to qualify as 'composite supply'?
The supplies must be taxable
Which one of these is NOT a characteristic of a 'composite supply'?
Two or more taxable supplies are naturally bundled
Which one of these is NOT a characteristic of a 'mixed supply'?
The supplies are naturally bundled
Which one of these supplies qualifies as a 'composite supply'?
Supply of breakfast and dinner with accommodation in a hotel
Which one of these supplies does NOT qualify as a 'composite supply'?
Supply of toothbrush without toothpaste
Test your knowledge on composite supply and understand the concept of principal supply. Explore scenarios where multiple taxable supplies are bundled together and learn how they differ from composite supplies.
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