tax liabilities
This query is : Open
24 June 2017
What is tax implications if composition dealer purchase from URD since sec 9(4) which is for RCM for purchase from urd is not applicable to composite dealer
24 June 2017
RCM u/s 9(4) is not applicable to Composite dealer, just account for purchase & don't pay any RCM, Just pay tax on supply of goods @ compounded rate. Don't bother about input credit or RCM.
24 June 2017
Composition scheme does not affect the liability of the dealer to pay tax under reverse charge mechanism.
Also section 10(4) state that Composition dealer shall not be entitled to any credit of input tax. So it can be interpreted that a composition dealer shall not claim credit of tax paid under Reverse Charge Mechanism.
Also composition dealer shall pay tax under Reverse Charge Mechanism at normal rate of tax applicable to such supply and not at the rate applicable for his category.
Also section 10(4) state that Composition dealer shall not be entitled to any credit of input tax. So it can be interpreted that a composition dealer shall not claim credit of tax paid under Reverse Charge Mechanism.
Also composition dealer shall pay tax under Reverse Charge Mechanism at normal rate of tax applicable to such supply and not at the rate applicable for his category.
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24 June 2017
Thanks guys
24 June 2017
Dear Dibin will u please give me reference (section or notification) in which law clear such issue...
24 June 2017
Rashmi Gandhi i refere sec that u provide..... It make my doubt clear.... Thanks for information...
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25 June 2017
Welcome.......
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