Rcm and no rcm

Shivani (Learner) (1881 Points)

16 June 2018  

Dear Friends

X being a supplier supplies tendu leaves and tobacco leaves to Y (interstate supply).

Now both tendu and tobacco leaves are covered under RCM (Section 9(3) ) but tendu leaves are exempt and tobacco leaves are taxable at 5%.

now when you pass entry in tally, it gives warning that "Invoice contains reverse charge and other than reverse charge".

Whats the need for this warning?

whats wrong in a invoice containing RCM (exempt tendu) and RCM (taxable tobacco) both?

regards

shivani