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/- ??
Menu
Rule 86B & RCM
Replies (3)
Quick Summary
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.
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
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
Recent Topics :
- How do you collect documents from clients for ITR
- GST ITC on Construction/ Tenant Specific Renovatio
- GST Treatment and Reporting of Share & Mutual
- AGM Defective Notice
- IMS Rejection of Sales and Sales return
- Taxation of Gift - Father to Daughter
- TDS on Property Purchased above 50lakh
- Accounting Treatment in Tally for Restaurant Sales
- Form 146 required
- Rule 86(B) Applicability
Related Topics :
CAclubindia
