shiraz ahmed (Student) (225 Points)
08 October 2017A Composittion Dealer purchases from another Composition Dealer:
The Seller cannot charge GST,
Is the buyer required to pay GST by RCM, even if both are Composition Dealers.
CA. Dashrath Maheshwari
(TaXpert)
(15103 Points)
Replied 08 October 2017
g mahesh Mundra
(Business and tax consultant)
(3293 Points)
Replied 08 October 2017
CA Rashmi Gandhi
(Chartered Accountant)
(86308 Points)
Replied 08 October 2017
shiraz ahmed
(Student)
(225 Points)
Replied 08 October 2017
do you mean, Govt would not get Tax from RCM from Composition Dealers ever?
as both have to pay Tax on their Turnover at a rate say 1%
CA. Dashrath Maheshwari
(TaXpert)
(15103 Points)
Replied 08 October 2017
mahendra sahoo
(Gst Practicion)
(700 Points)
Replied 08 October 2017
RAJA P M
("Do the Right Thing...!!!")
(127984 Points)
Replied 08 October 2017
| Originally posted by : shiraz ahmed | ||
 |
do you mean, Govt would not get Tax from RCM from Composition Dealers ever? as both have to pay Tax on their Turnover at a rate say 1% |
 |
RCM applicable to Registered Dealer make Inward supplies from Unregistered Dealer.
But, Basically Composition Dealer is registered under GST.. So, RCM can't applicable for A composition Dealer purchased from Another Composition Dealer...
RAJA P M
("Do the Right Thing...!!!")
(127984 Points)
Replied 08 October 2017
| Originally posted by : g mahesh Mundra | ||
|
Samir you are wrong | |
Please explain yourself Mr. G Mahesh Mundra...!!!
g mahesh Mundra
(Business and tax consultant)
(3293 Points)
Replied 08 October 2017
shiraz ahmed
(Student)
(225 Points)
Replied 08 October 2017
But, when they (Composition_Dealer Seller) would not charge tax from Composition_Dealer Buyer, there is no payment of Input Tax by Composition_Dealers.
Input Tax would be paid by Composition_Dealers when they would purchase from Registered Dealer. (and No Credit will be available)
Please reply to these 2 separate scenario: Does RCM apply on the Composition_Dealer Buyer when he purchases from another Composition_Dealer:
1. Within State
2. Interstate
RAJA P M
("Do the Right Thing...!!!")
(127984 Points)
Replied 08 October 2017
| Originally posted by : mahendra sahoo | ||
|
Composition dealer should pay tax on monthly basis or quarterly basis | |
Quarterly Basis (Payments & Returns)
g mahesh Mundra
(Business and tax consultant)
(3293 Points)
Replied 08 October 2017
RAJA P M
("Do the Right Thing...!!!")
(127984 Points)
Replied 08 October 2017
@ Shiraz Ahmed.,
First of Composition dealer is Registered dealer.. He is received supplies from Urd & Sec 9(3) then he ll be pay tax under RCM...
In case the CD purchased from RD with tax. After CD sell his goods Purchase Value + Margin. SO, The goods are inbuild tax from the first stage. SO, Tax is received the Govt based on the goods...
1. No need RCM...
2. Can't make Transactions A CD to CD
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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