Hi We are electronic traders and I need to know about RCM whether it is applicable to us or not Please let me know
Replies (3)
Quick Summary
This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) for electronic traders. While RCM under section 9(4) for purchases from unregistered parties is not applicable, RCM under section 9(3) for specific services like Goods Transport Agency (GTA) and legal fees is compulsory. Traders are advised to consult notifications 4/2017 (goods) and 13/2017 (services) for detailed guidance.
RCM u/s 9(4) Purchase from Unregistered party is not applicable to you. But Compulsory RCM u/s 9(3) is applicable to you like...If you received services from Goods transporter agency (GTA), On legal fee, ect... as defined u/s 9(3), than you are required to pay tax under RCM.