I am confused like many on the crowd. My query is on reverse charge mechanism. I run a OPC Private Limited. I have a business model where in I recruit professional on the basis of consultation.
Now, do I need to pay GST on behalf of every consultant? and claim after each quartet, does my business qualify for reverse charge mechanism?
Business is information technology services, deals with export services. Employeed 17 consultants.
In the category mentioned in check site ITis not mentioned.
Please guide me here. Thanks for attending my query.
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Reverse charge mechanism
Replies (6)
Yes your though process is correct. You are liable to pay Gst under Rcm and entitle to claim Itc if adjustable or clai of refund against export of services...
I feel this is extortion. At first gone through bond process for export business. Now this, where should we small business start-ups arrange for working capital. This is really insane.
Thanks for the reply by the way. Feel very angry about this entire process. Thanks for your input.
Thanks for the reply by the way. Feel very angry about this entire process. Thanks for your input.
reverse charge on purchase from interstate unregistered dealer applicable or not applicable
I believe professional consultant are also unregistered entity and hence employer need to pay GST on behalf of them? Have I understood it correctly?
yes agreed...at commericial level ...this is big challange ...from working capital management point of view
My confusion over the query is, does professional consultant to be considererd as vendor and hence unregistered vendor? and hence pay GST on behalf of them and then go for reverse charge mechanism ?
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