A Composittion Dealer purchases from another Composition Dealer:
The Seller cannot charge GST,
Is the buyer required to pay GST by RCM, even if both are Composition Dealers.
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Composition dealer purchases from composition dealer
Replies (19)
No question of RCM.
However, both needs to be within same state.
However, both needs to be within same state.
not applicable
Samir you are wrong
No required to pay RCM on such transaction as same is purchased from registered person.
do you mean, Govt would not get Tax from RCM from Composition Dealers ever?
as both have to pay Tax on their Turnover at a rate say 1%
they will be losing input credit on all services and goods they purchase. that is the tax govt will be getting. 😀
Composition dealer should pay tax on monthly basis or quarterly basis
| Originally posted by : shiraz ahmed | ||
 |
do you mean, Govt would not get Tax from RCM from Composition Dealers ever? as both have to pay Tax on their Turnover at a rate say 1% |
 |
RCM applicable to Registered Dealer make Inward supplies from Unregistered Dealer.
But, Basically Composition Dealer is registered under GST.. So, RCM can't applicable for A composition Dealer purchased from Another Composition Dealer...
| Originally posted by : g mahesh Mundra | ||
|
Samir you are wrong | |
Please explain yourself Mr. G Mahesh Mundra...!!!
quarterly basis on his sales
But, when they (Composition_Dealer Seller) would not charge tax from Composition_Dealer Buyer, there is no payment of Input Tax by Composition_Dealers.
Input Tax would be paid by Composition_Dealers when they would purchase from Registered Dealer. (and No Credit will be available)
Please reply to these 2 separate scenario: Does RCM apply on the Composition_Dealer Buyer when he purchases from another Composition_Dealer:
1. Within State
2. Interstate
| Originally posted by : mahendra sahoo | ||
|
Composition dealer should pay tax on monthly basis or quarterly basis | |
Quarterly Basis (Payments & Returns)
no RCM within state and cannot purchases from interstate composition dealer because composition dealer cannot sale inter state
@ Shiraz Ahmed.,
First of Composition dealer is Registered dealer.. He is received supplies from Urd & Sec 9(3) then he ll be pay tax under RCM...
In case the CD purchased from RD with tax. After CD sell his goods Purchase Value + Margin. SO, The goods are inbuild tax from the first stage. SO, Tax is received the Govt based on the goods...
1. No need RCM...
2. Can't make Transactions A CD to CD
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