If business annual revenue is less than Rs. 50 lakhs, then it can opt for presumptive tax under composition scheme. Tax Rate under such scheme is between 0.5 % – 2.5%. Only Manufacturer and other service provider providing service like Restaurant services can opt for such scheme. There are two drawback of such scheme i.e. 1) This scheme would not work if business is not confined to one state. 2) Input Tax Credit will not be available..