Hello Everyone, One of my client is doing timber (wood) business..Purchasing from URD. And selling to registered dealer. He is not getting purchase bill as the party is unregistered.
1. So my question is should my client liable to pay input tax on reverse charge basis ?
2. Or directly can he pay output liablity arising from sale ?
3. Should he make purchase bill as the party is not giving him the bill ?
1). No RCM is applicable...
2). Pay the Output Tax Liability using E-Cash Ledger or the balance available in the e-Credit ledger ( if any )...
3). Since no RCM is applicable, the compliance of Self Invoicing ( Purchase Bill ) will not be applicable. However your client can prepare Purchase Voucher for his own internal records...
CAclubindia
