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Reverse charge

avijit pal (tax consultant) (24 Points)

16 July 2017

Reverse charge applicable under composition scheme when registered dealer purchase from unregistered dealer?

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18 Replies

Mohit (Student CA Final ) (61 Points)
Replied 16 July 2017

not applicable

Anamika (Working) (119 Points)
Replied 16 July 2017

Yes reverse charge will be applicable at the standard rate on that particular service

Vishal Srivastava (18 Points)
Replied 16 July 2017

Reverse charge is applicable at the appropriate rate of such services and goods

Mohit (Student CA Final ) (61 Points)
Replied 16 July 2017

can't opt for rcm if payment is required to be made on rcm...

RAJA P M ("Do the Right Thing...!!!") (127072 Points)
Replied 16 July 2017

@ Avijit Pal...
* If A registered dealer purchased from URD then RCM ll applicable to the Registered Dealer...
* Registered dealer Purchased from Composition Dealer then RCM can't applicable to the Registered dealer. The registered dealer ll be loss his ITC...

Mohit (Student CA Final ) (61 Points)
Replied 16 July 2017

Well if a registered dealer purchased from unregistered one then under RCM registered dealer is required to pay Gst...

Now in case if a person opts for composition scheme the such dealer can't collect Gst, not required to pay Gst, can't avail ITC etc.... So if a composite dealer purchased from unregistered dealer how can he pay Gst... Bcoz he is only required to pay Gst @ 1% or 2% or 5% only at the end...

RAJA P M ("Do the Right Thing...!!!") (127072 Points)
Replied 16 July 2017

No, It's under RCM to Composition Dealer. Then he ll be pay to govt that taxes under RCM....

Momin Ali (156 Points)
Replied 16 July 2017

yes Raja PM ji correct and composition dealer will have to pay Rcm and he can not claim it and due date is 18th of quarterly basis along with tax.

1 Like

RAJA P M ("Do the Right Thing...!!!") (127072 Points)
Replied 16 July 2017

Yes, You are Exactly Correct Mr. Momin Ali....

Rahul (Professional) (34 Points)
Replied 16 July 2017

Reverse charge applicable at normal rates and not composition tax rates.. the taxable person would not be able to claim credit of the same

Sandeep Upadhyay (1518 Points)
Replied 16 July 2017

RCM is applicable when registered dealer purchase from unregistered

But if registered dealer purchase from composition dealer RCM not applicable because both are registered

Sandeep Upadhyay (1518 Points)
Replied 17 July 2017

Composition dealer has to pay GST liability

MOHIT (CA final Student) (46 Points)
Replied 17 July 2017

Whether RCM is applicable if a registered person is purchasing from different unregistered person and purchase is less than 5000rs from each person...however overal purchase is more than 5000 from unregistered persons in a day. Whether RCM is applicable?