Input credit on rcm
This query is : Resolved
14 August 2017
My client is dealer in second hand goods(used Bottle)paying tax on margin basis
(rule 32(5))As per this rule goods purchased from urd dealer no tax is required to be paid under RCM. However if they purchase from reg dealer no input tax credit will be available for such purchases.
But dealer will be paying other expenses ie to contractors for washing bottle and putting them in gunny bags etc ,the payments are made to unregistered person,for which dealer will have to pay tax under RCM section 9(4).
My query is that what ever tax he is paying under RCM on various expenses can we get the settoff(itc will be available)
(rule 32(5))As per this rule goods purchased from urd dealer no tax is required to be paid under RCM. However if they purchase from reg dealer no input tax credit will be available for such purchases.
But dealer will be paying other expenses ie to contractors for washing bottle and putting them in gunny bags etc ,the payments are made to unregistered person,for which dealer will have to pay tax under RCM section 9(4).
My query is that what ever tax he is paying under RCM on various expenses can we get the settoff(itc will be available)
14 August 2017
Your client is registered supplier or unregistered supplier?
14 August 2017
my client is registered dealer sir
15 August 2017
The input credit is restricted only on the second hand goods and not on other Supplies, your client is eligible for input credit on other supplies.
16 August 2017
Thank you very very much.sir i have tried this question to various speaker but unable to get the answer.Thanks alot again
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