RCM by composition dealer

222 views
User Avatar

1 Points Posted on 23 August 2020
If composition dealer purchased goods from registered dealer then as a composition dealer wheather I need to pay tax under RCM or not?
0 Reply Share Follow
On 23 August 2020 at 12:24 Report
Replies (2)
Quick Summary
This discussion clarifies whether a composition dealer needs to pay GST under the Reverse Charge Mechanism (RCM) when purchasing goods from a registered dealer. Generally, if a registered dealer charges GST on their invoice under Forward Charge Mechanism (FCM), the composition dealer does not need to pay RCM. RCM typically applies when a registered person receives taxable goods or services from an unregistered person, making the receiver liable for the GST.

User Avatar

Tax and Business Consultant
11616 Points Posted on 23 August 2020
If Composition dealer Purchase Goods from registered Dealer than registered dealer itself charge GST in invoice to composition dealer under FCM, except Goods are under RCM.

So, not required to pay RCM.
Reply
On 23 August 2020 at 12:30
User Avatar

1313 Points Posted on 23 August 2020
Reverse Tax Mechanism(RCM) is applicable when a registered person receives taxable goods or services from a person who is not registered then the receiver of goods or services is required to pay GST on such goods or services as per taxes applicable to such goods or services. (Section 9(4) ). In this case RCM is not applicable.
Reply
On 23 August 2020 at 17:25

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. Updating form 10-ee and Schedule FA if there is ch
  2. Sale of property in SLUM area ....SRA
  3. GST applicability on Shipping charges
  4. Outstanding Demand in Income Tax: How To Respond?
  5. LTCG on property sale
  6. Capital gains incidence due to bonus shares
  7. Amendment of Object Clause of Memorandum
  8. How Can I Request a Refund for an Accidental Airte
  9. TDS on salary paid in cash
  10. YEAR END GST ENTRY FOR RCM NOT PAID RS 5000 I.E OU

More recent discussions | Post

Related Topics :

Loading