Dear friends,
My query: I have paid in cash for some expenses in the month of July 2017 like pooja exp, cleaning, vehicle maintenance and so and so. But is some days crossed threshold limit of Rs.5000/- and some days can't reach the threshold limit. In these criteria, what is the role of RCM method? What are the expenses can take for the RCM? I have paid for some creditor’s payment in cash as per IT threshold limit Rs.10000/day.
you have to pay gst on RCM basis on particular day when expenses more than 5000
but pooja expenses are exluded under gst pls note
pay tax on RCM if cash payment is advance & to un-register person
correct
tax rate is applicable as per nature of expenses
@ GUNASEKARAN...
First of you understand the threshold limit...
It's not applicable for the cash payments. Just its to expenses if cash or bank mode. Also you seggregate your expenses like Under RCM and Not under RCM. After you can calculate the amount. Its exceed to 5k. Then you ll be tax under RCM.
WHAT IS THE GST RATE AND HSN CODE FOR HIRING OF JCB MACHINE ?
if paid to un registered person then on rcm basis pay gst
if he is registered dealer then rent should be above 20l in a year for gst
& there is no question of composit dealer here because composit scheme is not applicable for service except restaurants
CAclubindia
