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Applicability of reverse charge

Yash Goyal (Accountant Businessmen) (209 Points)

17 August 2017

Sir,

I have to paid Transportation Charges upto Rs 4,000.00 per day. So, this will attract Reverse Charge.

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28 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 17 August 2017

Yes, when you are registerd

Yash Goyal (Accountant Businessmen) (209 Points)
Replied 17 August 2017

But the Threshold is Rs 5000 per day

Ravi Garg (Article) (55 Points)
Replied 17 August 2017

I think limit of Rs. 5000 is for total exp in cash in a day on payment to uneegistered person for purchasing any goods and services

Ravi Garg (Article) (55 Points)
Replied 17 August 2017

I think limit of Rs. 5000 is for total exp in cash in a day on payment to uneegistered person for purchasing any goods and services

Yash Goyal (Accountant Businessmen) (209 Points)
Replied 17 August 2017

But if I paid Expenses of Transportation charges to Reg GTA, then what will be the seen.

CMA Paresh Darji (AGM-Accouunts) (35 Points)
Replied 17 August 2017

i fu pay to registerwd transporters then bill will include GST and hence not to pay under RCM

Yash Goyal (Accountant Businessmen) (209 Points)
Replied 17 August 2017

But Mr CMA Paresh Darji, GTA is not charging GST. According to them they are saying to charge RCM. So what can I do.

Can I take benefit RCM threshold of Rs 5000. As my Freight Charges are less than Rs 5000.

Chhatra Singh Dugar (1464 Points)
Replied 17 August 2017

is transportation paid to GTA is not covered under RCM by recipient. Isn't it covered under 5000/ limit. I think 5000/ limit is not applicable in this case.

CMA Paresh Darji (AGM-Accouunts) (35 Points)
Replied 17 August 2017

if GTA is registered then they have to charge GST unless it is exempted services

Kapil Mittal (STUDENT) (53 Points)
Replied 17 August 2017

In case of GTA sec 9(3) apply and have to pay tax even through exp. less then 5000.
For other exp sec 9(4) apply and limit 5000 apply.

Gaurav Palta (484 Points)
Replied 17 August 2017

As referred by Kapil Mittal, in case of GTA limit of 5000 per day not applicable.RCM payable on whole amount.

sundar velayutham (37 Points)
Replied 17 August 2017

https://cleartax.in/s/goods-transport-agency-under-gst

parth gambhir (student) (28 Points)
Replied 18 August 2017

As per my views the threshold limit of Rs. 5000 is for other expense other than freight. Now conditions apply are there is a limit of 750/- if in a truck there are many consignments but the value of yours is not more than 750 then it is exempted. The second case is if there are multiple consignments and the value does not exceeds 1500/- then it is exempted.