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Rule 86B & RCM

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Rule 86B:

Whether Cash Paid for RCM will be counted in 1% cash required to be paid under rule 86B.

For Example: I need to pay 5000/- under Rule 86B and I am paying 4000/- under RCM.

Then what amount i need to pay under Rule 86B, Rs. 1000/- or 5000/- ??
Replies (3)
No....

As RCM is paid on Inward Supply which is not paid through your Credit Ledger Whereas Rule 86B is that you can utilize credit ledger upto 99% to discharge your tax liability.
In addition to above, I would like to add that, RCM is payable in Cash only ( Cash ledger) , So you Can not use credit ledger, just confirm.
Why RCM is paid in Cash ???

As per the defination of Output Tax U/s 2(82) Output Tax excludes the tax payable on RCM & As per Section 49 the credit ledger can utilize against the Ouput Tax. So the RCM is always paid in cash ledger


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