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Whats the benefit of reverse charge to govt?

RCM 1099 views 5 replies
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Student
1374 Points Posted on 14 February 2019
If person paying tax takes input of the same what's the benefit of the same to the govt?
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On 14 February 2019 at 14:46 Report
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audit
22 Points Posted on 14 February 2019
No Benefit to govt...it was imposed to transfer liability of tax on particular transaction from one person to another eg rcm on director sitting fees is to be paid by company
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On 14 February 2019 at 16:14
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Student
1374 Points Posted on 14 February 2019
but company is ultimately going to take input of the same so what's the tax collection benefit?
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On 14 February 2019 at 16:15
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accounting & taxation freelancer
246 Points Posted on 14 February 2019
there is not banefitial matter.
only liable person of gst is changed..
i.e receiver not a provider.
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On 14 February 2019 at 17:06
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7 Points Posted on 14 February 2019
Govt has benefit.. If you pay rcm on unregistered purchase by which govt can easily to record your all direct expense and indirect expense by which person cant manipulate the books of accounts in fy.
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On 14 February 2019 at 22:31
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243 Points Posted on 15 February 2019
For eg. Gst on director's service is paid by the company, directors maY be many. Instead of collecting gst from each individual, its better to collect from one person. I believe that's one of the benefits of RCM.
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On 15 February 2019 at 08:06


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