Hi everyone, I have a client who is running a hotel business and into Composition scheme. From July RCM may come into play. So client has to pay 18% tax on rent? If yes how does it work? Same like general tax payers, where we pay tax first month and get refund on second month and utilize the same for second month. Pay tax for third month and utilize the same for fourth month? really need help on this issue.
please explain most of the clients are confused. please help
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RCM for composition dealer on rent
Replies (7)
Sorry , composition dealer liable to do RCM, but cannot claim input for the same.
So u have to deposit against RCM done but cant avail the input for same
So u have to deposit against RCM done but cant avail the input for same
Yes agree with Pankaj that you can't claim ITC for same but you have to pay it at normal rate ....
so every month, client has to pay 18% tax on rent? or once in two months like normal tax payer?
RCM is deferred till 30.6.18 and Rent is under section 9 (4) RCM is not liable to pay even by composite dealer.
Yes , Jagdish ji correct
As per Notification No.38/2017- Central Tax (Rate) dated 13.10.2017 section 9(4) deffered from 13/10/17 to 31/3/18
As per Notification 10/2018 CT (rate) , section 9(4) further defered to 30/06/18
In short u have do RCM ( @ 18%) upto 13/10/17
As per Notification No.38/2017- Central Tax (Rate) dated 13.10.2017 section 9(4) deffered from 13/10/17 to 31/3/18
As per Notification 10/2018 CT (rate) , section 9(4) further defered to 30/06/18
In short u have do RCM ( @ 18%) upto 13/10/17
thank you
U R Welcom.
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