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rcm on tour and travelleing exp under gst

07 August 2017

if tour ans travel exp incurred for bussiness purpose but in another state than how to calculate gst under rcm, whether we have to obtain registration for that state also.

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7 Replies

sunil kumar sharma (jr accountant) (708 Points)
Replied 07 August 2017

if you will pay to employees then no rcm

CA Piyush Shivani (...) (137 Points)
Replied 07 August 2017

what do you mean that i had reiembursed them than no need to pay rcm on tour charges

sunil kumar sharma (jr accountant) (708 Points)
Replied 07 August 2017

yesssss no rcm

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 07 August 2017

it is very inreguing question and I am not sure but you might have to register in that state too....my conclusion is based on the following -

suppose you are a Delhi based firm and have registration in Delhi only. one of your employee goes to Gujrat for official work for which he books a small motel, not having registration under gat. now as per section 12 place of supply for motel rent will be the place where motel is located and in this example it is Gujarat.
Since place of supply is Gujarat and the person providing the service is also in Gujarat, hence tax which will be charged is Gujrat cgst and Gujarat state gst........in reverse charge only the person liable to to pay tax changes and not the liability itself....hence Delhi based firm has to pay tax under Gujarat sgst act also......now section 24 says every person liable to pay gst on rcm basis has to compulsorily register itself......by going these provision the it seems like that you have to take register in other state also....

like I said earlier I might be wrong and I wish I would be wrong otherwise it will be an unnecessary burden on lots of companies and forms, specially firms like ca forms because they have to send their articles and ca to outstations for audit work and many expenses in these trips are spend on purchases from unregistered dealers......

CA Piyush Shivani (...) (137 Points)
Replied 07 August 2017

yes mr abhishek same point arises in my mind so that's why i am still confused . if any body is clear on this issue pls guide with reference of any written material