Gta rcm

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Puneet Jain

Puneet Jain (Querist)
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20 August 2017 will the limit of Rs. 5000/ day apply in case you pay freight expense and you have to pay gst under RCM?

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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21 August 2017 See tax is to be paid under reverse charge in following cases :

- Under section 9(3), i.e in case of specified services like, GTA(freight), advocates, directors etc.
- Under section 9(4), i.e in case of receiving supplies from unregistered dealer

And limit of RS. 5000/- per day is when supplies are received from unregistered dealer i.e, in case of 9(4) and not in case of specified services under 9(3).

So accordingly limit of 5000 per day not apply in case of freight because same is specified under 9(3).