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RCM Cap

RCM 342 views 1 replies

Quresh Taiyebi

49 Points Posted on 10 August 2017

Under reverse charge, can an unused 5000/day limit be utilized on following days or in aggregate (1.4/1.45/1.5/1.55 Lakhs during 28/29/30/31 days) in a month?

If not, then just for sake of operational/accounting convenience, can all differently dated petty cash vouchers (each valued for 5000 plus amount x 28 up to 31 Nos.) be clubbed together under one regular cash payment voucher (or self invoiced as a bill of supply) and shown as paid on last day of the month?

Replies (1)

Shivam Chomal

498 Points Posted on 10 August 2017

Although your query is not clear. But just clearing the meaning of the notification that under reverse charge if your sales under sec 9(4) is below Rs 5000 in a day, then the balance limit you cannot carry forwrad to next day or use aggregate of that limit in any other day.

For everyday,the limit is just Rs 5000, if your sales is below that, you are not liable under reverse charge, if more than 5000 you will be liable in reverse charge on making sales under sec 9(4).

There is no concept of carry forward of unused limit or accumulating limit, limit is fixed.

And yes you can do so for accounting convinience that issue a single tax invoice on reverse charge basis on yourself at the end of the month.