RCM APPLICABILITY

k Thanks.

 

 

 

 

 

 

 

 

 

 

 

sir the link given by you doesn't state that 5000 rule will not apply on the mentioned services in that pdf.

read the notification no 8 of central tax rate on cbec site.....it says that exemption will apply only for rcm u/s 9(4).....the list provided by me is of the services taxable on rcm basis under section 9(3).

so according to section 9(4) for intrastate supply via transport the 5k rule will be applicable irrespective of transporter is registered or not?

if transport service provider is a gta than tax on rcm basis will be payable under section 9(3) and hence 5000 limit will not apply......it does not matter whether gta is registered or not.....
In case transport service provider is not a gta and same is not exempted, than section 9(4) will atterect only if supplier is unregister (so 5000 limit will apply)....if supplier is register than there is no question of rcm.....

as far as I  can understand,

1.My transporter has given me a bilty of 4k (so he is gta ?) for an interstate supply,so i am liable to pay via rcm as he is gta.

2.If he has not given me bilty then i can show expense under 5k and no rcm is applicable?

.please corrcet if i am wrong.

2nd point is illegal....so I can't comment on that.....

1st point is right

thanks a lot sir for clearfying.
please tell

the rate at which rcm will be apllicable is 5% or 18%?
will i able to get itc on gst paid on rcm basis?

Sir, we pay to the tea vendor on monthly basis. For July the bill is recd on 2 Aug and the amount is 7500. Do we need to consider daily tea expenses of 100, 250, etc  or take 7500 on bill date and pay RCM.

it will be 7500 and you will have pay tax on rcm basis....you can request the tea seller to raise 2 bill of 3750 of two different date and accordingly pay him on 2 different date if you want to avoid rcm .....