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Liability of RCM

PRAVEEN SINGH (article) (31 Points)

11 September 2017

Composition dealer is liable to pay gst under RCM ?

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20 Replies

S K SOMANI (CONSULTANT) (22 Points)
Replied 11 September 2017

yes liable to pay on RCM

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 11 September 2017

Yes Exactly. Composition dealer pay Tax under RCM basis...

Satish Kumar Vinjarapu (3 Points)
Replied 11 September 2017

what is RCM?

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 11 September 2017

Reverse Charge Mechanism

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rinku gupta (accountant) (435 Points)
Replied 11 September 2017

what is % of rcm under copositn

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 11 September 2017

Tax % is based on Items Rate.

rinku gupta (accountant) (435 Points)
Replied 11 September 2017

raji ji u mean not a fix % on rcm in compostn

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 11 September 2017

Yes exactly...!
The GST rate as follow RCM rate. Any difference...?

rinku gupta (accountant) (435 Points)
Replied 11 September 2017

but sale gst also 1% na

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 11 September 2017

Don't be confused RCM related tax and Turn Over based tax.
The 1% or 2% tax is turn over based taxes payable by Composition dealer...
RCM related tax is purchased from URD then ll be pay Tax under RCM basis by both registered dealer (Regular dealer and Composition Dealer)