Forward Charge to Reverse Charge
This query is : Resolved
CA Pawan Koradia
(Querist)
11 April 2022
We are a cab service provider, till 31-03-2022 we were charging GTS under forwarding Charge now from 01-04-2022 we want it to be reverse charged. What is the procedure for it?
CA Akshay Hiregange
(Expert)
09 May 2022
I am assuming till Mar 22 12% with ITC was being charged, and you are not a body corporate.
Now from Apr 22 5% without ITC will be payable by your customers. You can start ensure appropriate disclosure in your invoice to customers (they are liable under RCM).
The issue is with ITC claimed on CG & Inputs which remain in stock as on 1-4-22 which may need to be identified and reversed as per Section 18(4).
Also, a written letter to dept. of change in practice is suggested to avoid enquiries in the future.
Now from Apr 22 5% without ITC will be payable by your customers. You can start ensure appropriate disclosure in your invoice to customers (they are liable under RCM).
The issue is with ITC claimed on CG & Inputs which remain in stock as on 1-4-22 which may need to be identified and reversed as per Section 18(4).
Also, a written letter to dept. of change in practice is suggested to avoid enquiries in the future.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- EPF ECR NEW FILE SEP 17TH 2026
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Capital Gail Exemption Certificate
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Under marginal scheme
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
