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?
5 Replies
fun mixer
(33 Points)
Replied 06 June 2018
No paid the full basic amount to the supplier and pay the RCM u will get the ITC on rcm
RAJA P M
("Do the Right Thing...!!!")
(128111 Points)
Replied 06 June 2018
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....
Kranthi Kumar
(19 Points)
Replied 06 June 2018
even few reputated companies follow the same
and they are taking its as ITC.
and they are taking its as ITC.
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