Reverse charge for section 9(4)

This query is : Resolved

CA Tanay Jindal (Querist)
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03 May 2017 HI can anyone elaborate the provisions of subsection 4 of section 9.
means what is the scope of this sub section
Whether it is applicable on our purchases only
or will it be applicable on the expenses portion also
say for eg; Rent services, stationery, and other day to day expenses from the dealer who are not register

Eg: If a company takes office on rent from an individual for Rs. 25000/- p.m i.e. 300000/- a year. will the company has to pay tax on reverse charge basis and claim credit of the same.

Guest

Guest (Expert)

04 May 2017 Yes .As section 9(4) of the Act states all goods and services from unregistered person will be taxed on reverse charge basis.