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Double Taxation in RCM

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RAJA P M ("Do the Right Thing...!!!")   (127299 Points)
Replied 25 January 2024

Originally posted by : Rajdeep kumar
https://www.yesbank.in/en-IN/business-banking/yes-gst/knowledge-articles/reverse-charge-buying-from-unregistered-dealers#

 

Read above article . 

This is what i am asking. I am buying product of 500 MRP from URD which is already GST paid then again i need to pay GST in RCM ?

As article clearly its it will leads to Double Taxation 

(which is already GST paid ...??)

this from URD. right? Then

Who is already paid...??

Where is already paid...???



Rajdeep kumar (35 Points)
Replied 25 January 2024

Paid by those who sold that product to URD , 

For example Their distributor had GST registered party so he paid GST on item in which price he sold to URD party.

Given article clearly says its double taxation . I don't know how to make you understand as i have given you yesbank article as well 


RAJA P M ("Do the Right Thing...!!!")   (127299 Points)
Replied 25 January 2024

First understand who is URD and What is RCM...!

After that think about Your question...


this from URD. right? Then

Who is already paid...??

Where is already paid...???

give your inputs to this question...
otherwise you can't understand if You read articles or any other...
please

RAJA P M ("Do the Right Thing...!!!")   (127299 Points)
Replied 25 January 2024

Originally posted by : Rajdeep kumar
Paid by those who sold that product to URD , 

For example Their distributor had GST registered party so he paid GST on item in which price he sold to URD party.

Given article clearly says its double taxation . I don't know how to make you understand as i have given you yesbank article as well 

If the article is clearly says and You are satisfied this then go with the same...

Why confused...??!

Simply... The said article is okay then you can go with deal as same...

 

Otherwise it's Your wish....

 

 

 

Note: I'm not touch (read) the link (article).


Rajdeep kumar (35 Points)
Replied 25 January 2024

Who is already paid...->  Their distributor had GST registered party so he paid GST on item in which price he sold to URD party.

Where is already paid...-> To govt as B2C sales since product was sold to unregistered party from registered party




Rajdeep kumar (35 Points)
Replied 25 January 2024

Article does not give solution , Article raised the query 

 

Not only this article even High Court also raised the same query 

https://surl.li/pssrk

 

I am asking for solution of raised query


sabyasachi mukherjee (26191 Points)
Replied 25 January 2024

Read relevant sec of rcm or else I can tell you.

Rajdeep kumar (35 Points)
Replied 25 January 2024

Please let me know 


Saravanan nagaraj (463 Points)
Replied 26 January 2024

Be patience when you deal with anything. You can read and gain knowledge from any where from this internet era. But, when you come to law please refer concern department notification and GO. 

I'm coming to the point. You used purchase mobile recharge from URD. Actually, URD does not have right charge or clubbed their tax and transfer on you. 

As you said the distributor made RCM. The company when they sell recharge coupon with margin. Less Margin the company charged GST on distributor and retailer. RCM is applicable for only URD purchase. You won't pay tax to URD. You directly pay to Government.

For example

Your product value Rs.100 + GST collected from distributor. The distributor has some margin + GST he charged GST on Retailer. The retailer has also some margin, + GST when you purchase. Note here. No one can't charge more than MRP. You also get margin. 

Purchase from URD, he get margin + GST. He may give including GST you lose your margin. But it is not exceed MRP right. As you said, you make huge purchase, then bargain for margin. 

Then you can solve it. Or share your regular invoice and URD invoices. Then only, we can give precise advise. Thanks

1 Like

Srinivas Chilagani (36 Points)
Replied 26 January 2024

All experts must leave this query. He is unable to understand.




Srinivas Chilagani (36 Points)
Replied 26 January 2024

All experts must leave this query. He is unable to understand.



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