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Rcm query

RCM 194 views 5 replies

Guest

Suppose I'm Composition dealer and I am paying rent to my landlord rs.20000 p.m.,then I have to pay tax on RCM basis, and I can not claim credit on the taxes paid, Does this mean hardship to composition dealers??????

Since they can't claim input tax credit.

Replies (5)

Pakshal

ca student

110 Points Joined April 2009

Yes. You are absolutely correct.

CA Saloni

Manager-Accounts & GST Consultant

5124 Points Joined July 2014

Yes its the way it is...

Chhatra Singh Dugar

1464 Points Joined June 2017

But only beneficial route is your land lord is registered in GST. So he will be issuing you Rent Invoice charging GST and adjust against his ITC.
Am I correct ?

Guest

But sir ....even if landlord is registered under GST, then also composition dealer can't avail Input tax credit. So GST paid under RCM by composition dealer will be cost to dealer since they can not claim credit for it.