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RCM applicable For Composi tion Dealer? If Yes than INput Credit benefit?

JITENDRA (KKMF) (29 Points)

02 September 2017

Composition dealer paying Transport Exp. more than 750/- ₹.RCM will applicable? it can be use as Composition fee?

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5 Replies

Abhishek Nair (2 Points)
Replied 02 September 2017

composition dealer will issue a bill of supply not a tax invoice no rcm applicable on composition dealer and no input credit received on inward supplies from composition dealer within state or outside state

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MELBIN JOSEPH (35 Points)
Replied 02 September 2017

RCM is also applicable for composition dealer.As he is opted for composition scheme he is not eligible for the benefit of input tax credit .

Bhaumik pandya (224 Points)
Replied 02 September 2017

yes applicable

anirudh reddy (4 Points)
Replied 02 September 2017

RCM is applicable for composition dealer. But any tax paid by him on RCM basis can't be taken as credit as composition dealers aren't eligible for input tax credit