on RCM

RCM 419 views 4 replies

R.SATISH KUMAR

ACCOUNTANT

110 Points Joined May 2018

sir, now RCM is applicability only on freight. is there any goods and services applicable for RCM.
Thanks in advance

Replies (4)

Upendra Neduri

164 Points Joined December 2016

1. RCM IS APPLICABLE ON SOME SPECIFIC GOODS AND SERVICES ALTHOUGH BOTH THE BUYER AND THE SUPPLIER ARE REGISTRRED PERSONS.

A list is provided by CBIC

Ravi SADhiyan

Practice

4510 Points Joined July 2017

Refer Below Notification

Notification No. 13/2017- Central Tax (Rate)

CA Abhilash N

Chartered Accountant

265 Points Joined December 2018

Refer notification no.13/2017-Central Tax (Rate) as amended by notification no. 29/2018-Central Tax (Rate) dated 31st December 2018.

Madhukar N Hiregange

Chartered Accountant

39039 Points Joined September 2008

The reverse charge mechanism is applicable under 2 provisions: Sec 9(3) & 9(4).

For procurement from unregistered dealers, 9(4) [ IGST 5(4)] is applicable upto 13th October 2017. This was suspended further. However for the past i.e. b/n 1st July to 12th October there would be a liability. Once this is paid then eligible credit ( most would be eligible) could be availed. At this point of time- the interest would be a cost. If this demand is made at a later date interest for several years would have to be paid.

Procurement fo services from specified persons ( GTA, Outside India, Advocate, Sponsorship, Govt etc.) fall under Sec 9(3) which was and continues to be liable. Again credit is available upto 31.3.2019 for such payments if eligible.