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Rcm liability

Rudrayani Shedjale (Assistant Accountant) (751 Points)

19 August 2019

I have liability towards Reverse Charge

no other tax liability than this.

& having ITC

so RCM liability can be adjusted against ITC available?

or RCM payment has to be done separately?

please advise

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5 Replies

Jayesh Rathor (15 Points)
Replied 19 August 2019

No, RCM liability can NOT be adjusted against ITC available and RCM payment has to be done separately by paying the RCM liability through Electronic Cash Ledger.

You are eligible to take separate credit of RCM liability paid but the said liability can't be adjusted with ITC available.

Sivaraman A R (.) (1038 Points)
Replied 19 August 2019

RCM liability has to be paid separately in your case.

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 19 August 2019

ok thanks for the information.

& if the case would be like we have RCM Liability + Liability other than RCM

if we clear entire liability then input of RCM payment can be availed in the same month?

Jayesh Rathor (15 Points)
Replied 19 August 2019

Yes input of RCM can be availed in the same month which will ultimately nullify the RCM effect.

You pay the RCM tax through cash ledger and claim input credit of RCM in the same return