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Whether RCM on labour charges applicable after Oct.2019

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Pururaj Thoke

7 Points Posted on 12 February 2020

We get some job work done from outside . All the works done by unregistered dealers .

whether we require to pay RCM on it ? As earlier information received RCM was waived till Oct.2019

Kindly guide.

thanks n best regards

Sunil Godbole

Replies (5)

Quick Summary

This discussion clarifies whether a manufacturing company needs to pay Reverse Charge Mechanism (RCM) on labour charges for job work outsourced to unregistered dealers after October 2019. The consensus is that RCM is generally not applicable for supplies received from unregistered dealers, unless specific conditions like those in the construction sector are met. Therefore, for standard job work, RCM on these labour bills is not required.

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 12 February 2020

RCM is not applicable supplies received from URD, except some conditions (supply received by construction field).

But, here "WE GET"

Who is we...? Your business details?

Pururaj Thoke

7 Points Posted on 12 February 2020

Sir we are manufacturing company in to engineering goods and our some job work is done by unregistered dealers , whether we need to pay RCM on this labour bills. ?

kindly advice.