Sir, we have paid Rs. 48600 RCM from April to November in Dec. 2019. Can we adjust RCM for output liability. If yes please provide entry
Replies (3)
Quick Summary
This discussion clarifies whether Reverse Charge Mechanism (RCM) payments made between April and November can be adjusted against output tax liability. It confirms that while RCM itself cannot be taken as Input Tax Credit (ITC), you can indeed claim ITC for the tax paid under RCM. This applies to most taxpayers, with the exception of those paying tax under Section 10 (composition dealers).