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Reverse Charge Mechanism(RCM)

Aakash Bhargava (student) (31 Points)

13 July 2017

Sir if I purchase goods from a dealer having a turnover of less than 20 lac then I have to PAY under RCM or not

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8 Replies

Sagar VeKariya (7 Points)
Replied 13 July 2017

Yes, the limit of 20L does not apply to person paying tax under RCM

Sagar VeKariya (7 Points)
Replied 13 July 2017

Yes, the limit of 20L does not apply to person paying tax under RCM

CA Bhargav Nathwani (CA in Practice) (8307 Points)
Replied 13 July 2017

Originally posted by : Sagar VeKariya
	Yes, the limit of 20L does not apply to person paying tax under RCM

agree

Saurabh Gupta (Chartered Accountant) (60 Points)
Replied 13 July 2017

The RCM provision gets attracted in two cases

1. If a registered dealer purchases goods or services from an unregistered dealer

2. For goods and services that are specifically covered under reverse charge.

In your case, if you are registered and you are making a purchase from an unregistered dealer then you will have to pay tax under reverse charge otherwise not.

Bhavneet Singh (8 Points)
Replied 13 July 2017

how do we make the invoice for rcm

Kaushik Deepak (KD) (Officer Accountant) (1136 Points)
Replied 14 July 2017

"if you purchase from unregistered dealer then you have to PAY tax under RCM" except rs. 5000/- per day (including multiple supplier)

1 Like

Rahul varshney (CA Finalist) (445 Points)
Replied 14 July 2017

RCM is basically depends upon registration,(A dealer having turnover less than 20L can also take registration voluntary.)

Vide Notification 08/2017 dated 28/06/2017, reverse charge provisions would not be applicable if the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, does not exceed Rs. 5000 in a day.