Labours provides unregistered person

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My company's Work is construction and it takes labor from an unregistered contractor then company will have to deposit reverse charge tax

please suggest and pls metion notification no


Thanks expert
Replies (3)

Under GST, there was RCM on buying from an unregistered dealer where payment is above Rs. 5,000. This requirement has been canceled from 1st Feb 2019 onwards. 

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Your payments to these workers won't be viewed as wages that are subject to taxation. Normal in-kind labor payments are exempt from taxation. 


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