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Reverse Tax

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Guest

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Guest (Querist)
03 March 2021 A clearing and forwarding agent incurs expenses like loading, unloading, repacking, transhipment, freight, demurrage and gets reimbursed from his principal. The agent collects gst and pays it each and every month too. Is the agent liable to pay reverse tax? Technically there will be no such reverse tax as he pays the gst collected from his principal every month. Still, is it mandatory for the agent to offset the reverse tax in his monthly 3B return?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
03 March 2021 Only the principal is liable to pay RCM on freight charges and claim ITC.
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Guest

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Guest (Querist)
03 March 2021 Thank you sir. Reverse tax is indeed a headache.




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