01 August 2017
we are working in chemical industry. Co has given sbi credit card to 4 employees and they are incurring exps from it and Co is reimburse they exps when they submit summary of exps incurred (it's like imprest account): Summary of exps incurred on 15th July-17 ;
1) LED lamp rs.600
2) Grocery rs.3400
3) Tea cups rs.300
4) Mineral water 1600
Total rs. 5900
All purchases are made from URD, whether RCM apply? Will it make any difference if I book some exps on 15th july and rest on 16th july?
02 August 2017
Such reimbursements are in essence purchase from unregistered dealers on behalf of the company, and hence Section 9(4) of the CGST Act for tax payments under reverse charge would apply. However this would be subject to Not..8/2017- Central Tax. Further it is suggested to book the expenses in two different dates in case the company desires to take advantage of the limit of Rs. 5000 of the Notification.
CAclubindia
