Does the company have to pay tax under RCM in GST when it purchases stationary like box of pen set at MRP from unregistered dealer?
Does the company have to pay tax under RCM in GST when it purchases stationary like box of pen set at MRP from unregistered dealer?
Yes reverse charge shall be applicable if any registered dealer purchase any goods from the unregistered dealer.since you purchases stationery from the unregistered dealer reverse charge shall be applicable to you and you being the registered dealer you have to pay the GST.
In case of purchase made from unregistered dealer at MRP of the product, the tax component is already included in the MRP, than if we pay tax under RCM, won't it be cascading effect? How shall it be calculated?
Supplies of less than Rs. 5000 per day are exempted from the levy of Reverse Charge provisions.
Aggarwal Sarawagi and Co
New Delhi
CA
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CAclubindia
