Reverse charges

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S ELAVARASI

ACCOUNTANT

1542 Points Posted on 11 August 2017

Dear Sir / Madam.,

Our company receive tea & coffee from A Person. Daily Tea Charges (Day to Day) is Less Than Rs. 150. We paid to him monthly payment.

The same way as Drinking Water charges. Also our company's daily expenses under Rs. 4000. (except above two expenses).

My Question is, Can i add our daily expenses limit for above said expenses...? Bcoz, We paid it the total amount but service received daily basis.... Please clarify it... Thanks in advance

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Replies (6)

Vinay Singh

28 Points Posted on 11 August 2017

Dear....

if you pay in excess of Rs. 5000 per day then you will have to pay reverse charge if opposite part is not registered under gst.... don't need to pay separate gst for each day for anyone.....just club the total amount monthly and raise a bill of reverse charge then pay it.....

Chhatra Singh Dugar

1153 Points Posted on 11 August 2017

Their is a confusion in this matter. If you pay on monthly basis your URD

Chhatra Singh Dugar

1153 Points Posted on 11 August 2017

cont reading ....
expense in month end will cross 5000/ limit. You need to pay under RCM. for URD purchases. In case you pay daily you will be within 5000/ limit.But every day you will have to make unnecessary entries in books.
So my suggestion to you is pay at the end of month and deposit GST for URD purchases on that day and take ITC credit. You are not loosing any thing monetarily.