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Rcm exemption for rs 5000/-

Nisha Yadav (Accounts exe) (455 Points)

29 June 2017

As per notification "Provided that the said exemption shall not be applicable where the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, exceeds five thousand rupees in a day."

So my query is

What if we purchase from 2 unregistered dealer for Rs 5000 and Rs 1000 in a day so sould i pay RCM on Rs 1000 or Rs 6000.

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38 Replies

richa more (manager) (66 Points)
Replied 29 June 2017

u have to pay on 6000 it is not exempted amt

1 Like

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 29 June 2017

You have to see the aggregate in a day, so GST has to be paid on 6000/-

1 Like

Neelam Bhaktani (None) (43 Points)
Replied 29 June 2017

Yes you have to pay gst on 6000.

Shams (Consultant) (157 Points)
Replied 29 June 2017

Originally posted by : saloni
	You have to see the aggregate in a day, so GST has to be paid on 6000/-

Agree, aggregate in a day will count.

Dev Kumar (Accounts Manager) (102 Points)
Replied 29 June 2017

What if purchase from unregistered dealer per day is RS 3500, amount crosses one lac a month?

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 29 June 2017

No issues. No need to pay tax.

1 Like

Jayesh Doshi (Self) (177 Points)
Replied 30 June 2017

If i hv purchase from 2 unregistered dealers in one day i.e. on same day. 1st bill is Rs.4000 & another bill of Rs.2000 so here my query is on which amount i hv to pay Reverse charge tax. whether i'll get exemption of Rs.5000 & hv to pay tax on balance Rs.1000 ? or Whether i can not split bill & get exemption on Rs.4000 & hv to pay tax on Rs.2000 ? or as my purchases from URD exceeds Rs.5000 per day so no exemption & hv to pay Tax on entire purchases i.e. Rs.6000 ? please clarify. Thanks.

jasveer (sr acountant) (48 Points)
Replied 30 June 2017

Yeah

you have to pay GST On 6000/- there is no way to exclude Rs. 5000/- From Entire purchase in a single day once it cross the exepmtion limit.

if you have doubt, you can also refer Gift tax where tax has to be paid once it is exceed the limit of Rs. 50000/-

2 Like

Karthik Kumar N (Asst Manager Finance & Accounts) (81 Points)
Replied 02 July 2017

Can we take ITC on tax paid under RCM

1 Like

Ronak (accountant) (27 Points)
Replied 04 July 2017

Do this 5000/- figure consist of daily payment for items exempt under GST also. For Example I make following two payments in a day

1. Rs 4800/- for printer purchased from unregistered dealer

2. Rs 1200/- for milk purchase for office use from unregistered dealer.

Now pls tell me i will be covered under RCM or not?????

Thanks in advance

Lakshmikant rai (student) (95 Points)
Replied 05 July 2017

on 1000 only

Lakshmikant rai (student) (95 Points)
Replied 05 July 2017

sorry ,for above reply you have to pay gst on rs 6000 ....

Arun Jadhav (Sr. Accountant) (6 Points)
Replied 05 July 2017

We are working as works contactor..

When our workers or staff going to work on site (not Local Work) in such case we give Rs. 450 as food expenses for a day and Travelling expenses as at actual, both expenses consider as URD in that case the such expenses will get full exemption under RCM? or will GST applicable under RCM