In case of RCM will company deduct the GST amount from the gross amount payable to the unregistered service provider, is it valid to do so?
(or) company has to pay the GST out of it pocket for RCM cases?
Menu
Deduction of GAT from gross income payable under RCM
Replies (5)
Wait for experts to reply your query...
No paid the full basic amount to the supplier and pay the RCM u will get the ITC on rcm
It's very wrong. Most of the Dealers following the way, Deduct GST in bill value...
But,
As per GST rule RCM payable for the Bill value (Bill value + GST)
For Ex:
URD's bill value Rs. 10000.. and it's taxable Raye @ 18%
Then Company will be pay Tax under RCM basis like RCM basis Tax Rs 1800...
- 10k to Supplier.
- 1.8k to Govt.
Total 11.8k....
But,
As per GST rule RCM payable for the Bill value (Bill value + GST)
For Ex:
URD's bill value Rs. 10000.. and it's taxable Raye @ 18%
Then Company will be pay Tax under RCM basis like RCM basis Tax Rs 1800...
- 10k to Supplier.
- 1.8k to Govt.
Total 11.8k....
Good explanation by Mr Raja sir.
even few reputated companies follow the same
and they are taking its as ITC.
and they are taking its as ITC.
Recent Topics :
- GST Transaction On Used Clothing
- ITC availed on 5%-rate passenger transport (AC bus
- Extension of Due Date of AY 2026-27
- FAST DS 2026
- Does AIS GST Purchase aggregate GSTR-2B expenses?
- Form 26A - System has encountered some technical p
- Tool to convert GST invoice PDFs into Excel —
- Revised or rectification or leave it?
- Private limited tax audit
- LTCG - SEC54
Related Topics :
CAclubindia
