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reverse charge applicable on dealer regd under composition scheme???

RCM 3147 views 6 replies
whether any dealer registered under composition scheme makes purchases from URD is liable to pay gst under reverse charge?? if yes whether he will be eligible to get input of the same
Replies (6)

Yes..................

No..........

Any tax payable under Reverse Charge Mechanism will not be covered under the scheme. These taxes will be liable to be paid as a normal tax payer and No, a Composition Dealer is not allowed to avail input tax credit of GST paid to their supplier.

Sir,

If a noraml dealer purchase from composition dealer so that any tax liability applicable under reverse charge macanism or not.

RCM IS NOT APPLICABLE ..IT IS APPLICABLE ONLY IF YOU ARE PURCHASING FROM UNREGISTER DEALER

Ms. Upasana Gupta,

 

Can you please elaborate this line

"These taxes will be liable to be paid as a normal tax payer"

 

Shall I interpret this line that if a Composition dealer (Ready made Garments Trader) is taking services of a Tailor for stiching cloths and paying him Rs.15000 per day to him.

 

Then too, the compostion dealer is not required to pay any Tax under RCM as he has to only pay GST at 1% of its total turnover.

THANKS SIR


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