RCM

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This discussion addresses a query regarding Reverse Charge Mechanism (RCM) for unregistered purchases exceeding £5000 made between July and October 2017. The client in question failed to pay the RCM on these purchases but did account for output tax on the sale of the goods. The core question is whether the RCM tax must now be paid during the annual return filing for 2017-18, or if there's a way to avoid it. The consensus leans towards the necessity of paying the outstanding RCM tax.

Sachchidananda

Sachchidananda (Querist)
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18 February 2020
My query is during July to 12th October 2017 there is RCM provision right for unregistered purchases more than 5000/- liable for RCM. Scenario is client has not paid RCM for unregistered dealer purchases but on sale of such goods they have paid output tax . This transaction has happened in july 2017. So does they need to pay such RCM tax which they missed while filing annual return for 2017-18 or is there any way to avoid it.