if a regd. dealer takes GTA services from unregd. GTA, who is liable to raise invoice ? whether tax under RCM to be paid u/s 9(3) or 9(4) ?
KUNDAN KUMAR (Tax consultancy) (247 Points)
18 July 2018if a regd. dealer takes GTA services from unregd. GTA, who is liable to raise invoice ? whether tax under RCM to be paid u/s 9(3) or 9(4) ?
Deepak Gupta
(CA Student)
(15922 Points)
Replied 18 July 2018
RCM payable u/s 9(3).
For availing the input on reverse charge, you need to raise an invoice on self and should issue a payment voucher at the time of making payment to the transporter. Sec.31(3)(f) and (g) of the CGST Act, 2017.
You can take the input of the reverse charge tax paid as above. Sec.2(62) of the CGST Act, define input tax and includes tax payable under reverse charge basis.
For payment of reverse charge tax, any credit cannot be used and must be paid in cash. As per Sec.49(4) of the CGST Act, ITC can be used for payment of output tax and Sec. 2(82) of the CGST Act, excludes tax payable under reverse charge basis in output tax definition.
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