Rcm and tds

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This query is : Resolved

TAVKER NIKUNJ (Querist)

13 December 2018 HELLO SIR

I PURCHASE SAND WITH ONE OF MY CLIENT XYZ. THEY GIVE ME TWO INVOICE. ONE IS MATERIAL INVOICE AND SECOND FOR TRANSPORTATION EXPS. THEY PAID TRANSPORTATION EXPS TO TRANSPORTER.

SO IN THIS CASE MY QUESTION IS THEY DO GST PROVISION ON MATERIAL INVOICE BUT NOT ON TRANSPORTATION EXPS. CAN WE LIABLE FOR GST RCM AND TDS ???

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

13 December 2018 As you have not paid transport charges to transporter you are not liable for RCM. More over GTA not involved in such transport. GST not applicable on such transport. TDS applicable.
Supplier of sand has to charge GST on transportation charges applicable for materials.

TAVKER NIKUNJ

TAVKER NIKUNJ (Querist)

13 December 2018 And what about TDS??
For our side transportation provision under which head Pirchase or Direct Exp??
Because if we provision saperat in Direct exp then we have to deduct tds...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 December 2018 As per GST provisions transport cost incurred by seller will form part of material cost so include it under material cost no TDS applicable.

TAVKER NIKUNJ

TAVKER NIKUNJ (Querist)

15 December 2018 HII SIR
I NEED ONE MORE HELP FROM YOUR SIDE

I HAD RECENTLY JOINED IN ONE PARTNERSHIP FIRM. WHICH HAD 2 BRANCHES MAINTAING IN GUJARAT AND M.P. MY PROBLEM IS IN F.Y. 2017-18 THEY DID NOT MAINATAIN BRANCHWISE ACCOUNTS AND THIS YEAR THEY MAINTAIN SEPERATE ACCOUNTS BUT NOT OPENING ANY SINGAL BANK ACCOUNT IN BRANCH (M.P.) SO AS OF NOW ALL PAYMENTS AND RECEIPT DONE BY GUJARAT BRANCH.AND IN M.P. ALL ENTRY ADJUSTED BY J.V. AS OF NOW I HAD DONE A BRANCH LEDGER IN H.O. AND HO. LEDGER IN BRANCH ACCOUNT. AND HOW CAN I MANAGE OPENING BALANCE IN M.P. BRANCHES. SO IS THIS ACCOUNTING METHOD IS RIGHT?? AND IF ANY ISSUE THEN PLEASE SUGGEST ME TO HOW CAN I MANAGE PROPER

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 December 2018 No problem in continuing existing method.

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