our firm is under tax audit having registered under GST. How to calculate RCM if expenses is morethan 5000. as example shown
staff welfare 200.00
stationery 100.00
cartage 2000.00
tour expenses 9000.00
how to prepare RCM in that case and on which account rcm . if rcm paid then we can claim these expenses in profit and loss account or not.
8 Replies
Gopal Kumar Gupta
(Accounts & Tax Consultant)
(206 Points)
Replied 28 July 2017
RCM will be paid on total value of supply . the rate can be 18%
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 28 July 2017
You can calculate RCM for Stationary, Cartage and Tour expenses (based on bills).
oh yes you can add these expenses are your PandL....
oh yes you can add these expenses are your PandL....
Gopal Kumar Gupta
(Accounts & Tax Consultant)
(206 Points)
Replied 28 July 2017
u can claim RCM paid as itc to adjust tax on outward supply
sunil kumar sharma
(jr accountant)
(708 Points)
Replied 28 July 2017
tour expenses are not including in total. because there are relationship between employees and employer. No tax on tour expenses. if tour expenses are paid to employees.
Gopal Kumar Gupta
(Accounts & Tax Consultant)
(206 Points)
Replied 28 July 2017
Thanks. Good point to note
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 28 July 2017
No. Tour (he ask travelling expense as tour expense) expenses is not welfare expenses. It's business expense like to meet other areas customers... So, it's also calculate tax.
I said based on bills mean, employee ll be give bills for expenses then segregate the bills which is under RCM then pay tax....
I said based on bills mean, employee ll be give bills for expenses then segregate the bills which is under RCM then pay tax....
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 28 July 2017
Welfare expenses means,
The employee ll be direct consum the expenses it's called welfare expenses.
Bus fare, auto fare these are not consume the employee. so it's not welfare....
Food, tea, Snacks also it's consume directly by employee these are welfare expenses.....
The employee ll be direct consum the expenses it's called welfare expenses.
Bus fare, auto fare these are not consume the employee. so it's not welfare....
Food, tea, Snacks also it's consume directly by employee these are welfare expenses.....
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