Forward Charge to Reverse Charge

This query is : Resolved

CA Pawan Koradia (Querist)
Follow

11 April 2022 We are a cab service provider, till 31-03-2022 we were charging GTS under forwarding Charge now from 01-04-2022 we want it to be reverse charged. What is the procedure for it?

CA Akshay Hiregange

CA Akshay Hiregange (Expert)
Follow

09 May 2022 I am assuming till Mar 22 12% with ITC was being charged, and you are not a body corporate.
Now from Apr 22 5% without ITC will be payable by your customers. You can start ensure appropriate disclosure in your invoice to customers (they are liable under RCM).
The issue is with ITC claimed on CG & Inputs which remain in stock as on 1-4-22 which may need to be identified and reversed as per Section 18(4).
Also, a written letter to dept. of change in practice is suggested to avoid enquiries in the future.

Message likes : 1 times