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Treatment of Reverse Charge for Composite Dealers...
Respected Sir, Could you please tell me if anyone Opt to take registration under Composition Scheme....then what happen if he purchase anything from unregister dealers...reverse charge applicable on it...tell me about its return or input tax credits
Replies (5)
rule 3 clause d specific if a person opt to pay tax on composition scheme and purchase from unregistered dealer than he has to pay tax on said purchase on normal provision because composition will not apply in this case. and ITC of said purchase will not available.
The composition dealer will have to pay tax on normal rate under RCM. Because he is a composition dealer, he can't claim ITC.
but sir anyways if composite dealer buys goods from registered dealer then also he has to pay tax...
please correct me if I'm wrong
Mr.Sandesh Shet, if composite dealer purchases goods from registered dealer then RCM is not applicable in this case. The supplier will pay tax.
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