if we buy tea from road side stall and show expenses in our firm. should I need to pay gst on tea
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GST on expenses
Replies (20)
As Per Section 9 (4) In Respect of The Supply Of Taxable Goods or Services or Both by a Supplier Who is Not a Registered Person , to a Registered Person shall be Paid By Such Person on Reverse Charge Basis.
so in the light of above provision u are liable to pay GST , if u buy a tea from roadside and show them as expense in ur firm
thanks for your immediate reply
it means that all expenses like office expenses, conveyance charges , stationery purchase, general expenses. postage and courier etc will attract reverse charges?
it means that all expenses like office expenses, conveyance charges , stationery purchase, general expenses. postage and courier etc will attract reverse charges?
as per my knowledge Yes
if u get services from unregistered person , and u r a registered person
so as per section we will have to buy tea from big hotel and for conveyance will have to use Ola, uber only ?
sir please don't misjudge the act
if u are liable to pay tax as RCM , act also empower u to take input tax credit of the tax which is paid by u as rcm
means in this case u FIRST pay the tax and after that take credit of the same amount
yes sir it is similar to section 12 in tamilnadu vat tax.
to pay tax when purchased from unregistered dealers and claim in subsequent month and adjust against tax liability
so it means we need to keep our books updated and expenses entry to be made every month and adjust accordingly instead of year end adjustment
to pay tax when purchased from unregistered dealers and claim in subsequent month and adjust against tax liability
so it means we need to keep our books updated and expenses entry to be made every month and adjust accordingly instead of year end adjustment
NO NO NO...............................
Please try to understand the matter.
Reverse charge is not applicable on expenses.
If you are a Manufacturer, Whole Seller or Distributer whatever of TEA and in that case you will purchase TEA from unresitered dealer then you have make the payment of reverse charge.
In sort to say TEA must be your ITEM in your business.
sir with due respect please read section 9(4)
"The State tax in respect of the supply of taxable goods
or services or both by a supplier, who is not registered, to a
registered person shall be paid by such person on reverse charge
basis as the recipient and all the provisions of this Act shall apply
to such recipient as if he is the person liable for paying the tax in
relation to the supply of such goods or services or both."
section 9(4) appied on both goods and services.....
so as per law we have to pay gst on all our expenses. if yes then who will purchase or take services from unregistered dealers ? and what is the sense of giving them exemption limit of 10/20 Lacs. they will be just killed.
Sir, Can Goods Sold Returned by Un- Registered Retailer to Dealer, Come under Credit Note (CGST Sec(34) (1)) or Will It be a RCM Invoice for Dealer and he has to pay GST for it.
Yes you have to pay GST on all expenses. But don't worry you can take setoff of all tax AMT.
Sir,
Expenses incurred on May month im going to make Payment on July i have to pay Reverse charge mechanism on this??
or any Basis is there for this like Service tax before/after 14 days of Invoice,
dear sir
i am exporter export to outside india i paid to gst please suggest me
Dear Sir,
On which expenses RCM is NOT there?
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