Tax Liability - GTA under RCM

RCM 308 views 5 replies

V.Marimuthu

Finance Excecutive-Indirect Taxation

376 Points Posted on 19 June 2018

Dear Experts please clarify my below doubts.

X (GTA) is raising the invoice on 1st January, 18 and sent the invoice copy to us in that invoice they have clearly mentioned GST will be paid by recipient as per notification no. 13/2017 Dt. 28/06/17.

Now (June, 18) we are going to account the bill and we have to pay the GST under RCM.

My doubt is whether we have to pay GST along with interest? Because Invoice has been raised on 1st January, 18. As per POT Invoice raised is earlier date and tax liability incurred on 1st January, 18.

Replies (5)

Ravi SADhiyan

Practice

4510 Points Posted on 19 June 2018

Originally posted by : V.Marimuthu
	Dear Experts please clarify my below doubts.X (GTA) is raising the invoice on 1st January, 18 and sent the invoice copy to us in that invoice they have clearly mentioned GST will be paid by recipient as per notification no. 13/2017 Dt. 28/06/17.Now (June, 18) we are going to account the bill and we have to pay the GST under RCM. My doubt is whether we have to pay GST along with interest? Because Invoice has been raised on 1st January, 18. As per POT Invoice raised is earlier date and tax liability incurred on 1st January, 18.

YES

You are Liable to pay Interest on Tax

V.Marimuthu

Finance Excecutive-Indirect Taxation

376 Points Posted on 19 June 2018

Thank you sir, please tell me the interest rate?

Ravi SADhiyan

Practice

4510 Points Posted on 19 June 2018

Originally posted by : V.Marimuthu
	Thank you sir, please tell me the interest rate?

18 %

50. Interest on delayed payment of tax
(1) Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall, for the period for which the tax or any
part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent, as may be notified by the Government, on the recommendation of the Council.