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Reverse charges on discount

ARVIND (ACCOUNTANT) (131 Points)

29 April 2020

sir, I have received 10 lak
discount who show profit loss indirect income I want reverse charges on discount then I am eligible avail itc on reverse chrages

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18 Replies

RAJA P M ("Do the Right Thing...!!!") (127231 Points)
Replied 29 April 2020

Your query is not cleared...
Can You elaborate with details of discount and it's related supplies...?

1 Like

ARVIND (ACCOUNTANT) (131 Points)
Replied 29 April 2020

I had received 10lac discount against target achieved which is showed in indirect income
whether we have to reverse the Gst on that 10lac or not. plz suggest

RAJA P M ("Do the Right Thing...!!!") (127231 Points)
Replied 29 April 2020

No need...

1 Like

ARVIND (ACCOUNTANT) (131 Points)
Replied 29 April 2020

If we reverse the Gst shall we claim the Gst or not

MARIES (GST Consultant) (219 Points)
Replied 29 April 2020

@ ARVIND,

Your query is not clear. However, I understand that you have received 10 lacs discount( from someone)and shown as indirect income. Now you are saying you want to pay the tax under reverse charge. Since, you mentioned this amount as discount , reverse charge is not applicable to this.

I also understand that you want to know whether ITC can be availed on payment of tax under reverse charge. The answer is yes, but subject to the time limit specified under section 16(4).

1 Like

MARIES (GST Consultant) (219 Points)
Replied 29 April 2020

@ ARVIND,

Still your query is not to the point, you may contact me on whatsapp 6380 592 749

1 Like

RAJA P M ("Do the Right Thing...!!!") (127231 Points)
Replied 29 April 2020

If we reverse the Gst shall we claim the Gst or not

What You mean this..?

As per Your query "No need to reverse the ITC".

1 Like

Sumalatha M (14 Points)
Replied 29 April 2020

Sir I want perfect details of reverse charges

1 Like

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 29 April 2020

As per the query :
Received Discount : GST need to be reversed if fulfills condition prescribed in Section 15(3) of CGST Act .

RCM : No RCM is applicable on discount .

Note : if your supplier has not given GST less CNT , then you can book the same under Income head with reducing the ITC

2 Like

CA Mayank A Jain (Chartered Accountant in Practice) (1035 Points)
Replied 29 April 2020

No reveral of ITC is required on receipt of target discount. You may refer the AAAR in the case of MRF LTD.

1 Like

sanjith kotni (Articled assistant) (663 Points)
Replied 29 April 2020

Visit my blog below . explained in case by case approach for discounts.

sanjithkotni.blogspot.com

RAJA P M ("Do the Right Thing...!!!") (127231 Points)
Replied 29 April 2020

Mr Sanjith Kotni., This platform not for advertisement purposes. Don't advertise Your business in CCI website. If You will support through CCI then post in particular articles head or post advertisement platform... Stop Your such posts...

sanjith kotni (Articled assistant) (663 Points)
Replied 29 April 2020

Hello sir .In most of my replies,I posted the answer and only for more details i refer to visit blog.
By the way I know about this platform.
I have my right to text without hurting others and I am not doing anything for business

RAJA P M ("Do the Right Thing...!!!") (127231 Points)
Replied 29 April 2020

Hello Dear...

CCI is one of the popular platform for taxation. Then why You insert Your BLOCK in the website...
If You want beneficial then advertise it's specifically. Don't be put in queries...