GTA want to take ITC
priyanshu shroti (28 Points)
07 November 2024priyanshu shroti (28 Points)
07 November 2024
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5128 Points)
Replied 08 November 2024
Comparing FCM to Reverse Charge Mechanism (RCM): Benefits of FCM over RCM:
Additionally, consider the following: -
Review your contractual agreements with the private limited company. -
Ensure you have the necessary registrations and documentation. -
Analyze the impact on your cash flow and pricing strategy.
By opting for FCM, you can potentially benefit from ITC claims and optimize your tax liability.
priyanshu shroti
(28 Points)
Replied 09 November 2024
Sahil Jaiswal
(Article Assistant)
(1072 Points)
Replied 12 November 2024
Hello,
When providing Goods Transport Agency (GTA) services, you can choose to pay GST either under Reverse Charge Mechanism (RCM) or Forward Charge Mechanism (FCM). Here’s a breakdown of the benefits and considerations for choosing FCM over RCM, especially regarding Input Tax Credit (ITC):
Liability to Pay Tax:
Input Tax Credit (ITC):
GST Rates: