Rs 5000 per day limit for urd purchases
This query is : Resolved
SANJAY KAWALE
(Querist)
11 August 2017
Dear Experts
1 If a URD dealer ( being t/o below 20L) gets service of Rs 4000 from URD service provider, is he liable to get GST Registration? (as RCM is applicable to RD purchasing from URD for more than Rs 5000 per day.)
Pl Explain.
1 If a URD dealer ( being t/o below 20L) gets service of Rs 4000 from URD service provider, is he liable to get GST Registration? (as RCM is applicable to RD purchasing from URD for more than Rs 5000 per day.)
Pl Explain.
CA Suresh Jain
(Expert)
11 August 2017
As such there is no value based exemption for the assesse receiving Supply of Goods or services from URD suppliers. Practically, since you are not liable to pay any tax and you do not take registration, there would be no implication if you have correct supporting to prove value of per day purchases
N. Jain
group.blr@gmail.com
N. Jain
group.blr@gmail.com
11 August 2017
under section 9(4) URD to URD no RCM will be applicable i.r.o. turnover
CA Suresh Jain
(Expert)
12 August 2017
Section 24(iii) mandates compulsory registration for the persons who are required to pay tax under reverse charge
SANJAY KAWALE
(Querist)
12 August 2017
Mean to say even Rs100 purchases by URD from URD need to take reg under RCM
Since S 24(iii) says persons who are required to pay tax under reverse charge has to take reg compulsorily.
But who are the persons that are liable to pay under RCM. As per 9(4) RD has to pay under RCM if he pur or receive service from URD. Nothing is mentioned about URD purchase from URD. Then this URD is liable to pay under RCM?
Since S 24(iii) says persons who are required to pay tax under reverse charge has to take reg compulsorily.
But who are the persons that are liable to pay under RCM. As per 9(4) RD has to pay under RCM if he pur or receive service from URD. Nothing is mentioned about URD purchase from URD. Then this URD is liable to pay under RCM?
CA Suresh Jain
(Expert)
13 August 2017
The opinion of Ms. Neha is correct and the registration in this case. Inconvenience is regretted
SANJAY KAWALE
(Querist)
14 August 2017
Condition for 9(4). 1Goods purchaser /Service receiver must be RD.
2 Goods seller/Service provider must be URD
The above section does not mention about URD Goods purchases/Service Receiver
Means RCM do not apply to URD as receiver must be RD only.
S 24(iii) says for compulsory registration for a person who is liable to pay under RCM.
Then how URD goods purchaser/service receiver are liable for compulsory reg before he touch threshold limit of 20L. Pl Explain
2 Goods seller/Service provider must be URD
The above section does not mention about URD Goods purchases/Service Receiver
Means RCM do not apply to URD as receiver must be RD only.
S 24(iii) says for compulsory registration for a person who is liable to pay under RCM.
Then how URD goods purchaser/service receiver are liable for compulsory reg before he touch threshold limit of 20L. Pl Explain
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