reverce charge

Recipient is liable to pay tax to the government under reverse charge mechanism... For which expenses u r paying reverse charges... Now reverse charges on purchase made from unregistered person is suspended till 31.3.18

@ Susmit Nandi.,

Wrongly understand the concept of RCM...
RCM is calculated for the billed total amount. It's exclude calculation...
Ex :
If you received bill value Rs. 10000. It's tax rate @ 5%. Then you ll be pay Tax under RCM basis as
10000 * 5% = 500....

Hi, susmit,

Not like that,

Explanation,

If the URD ( the supplier )sold goods rs of 10000/ to the xyz company ( the receipt ). the receipt has to pay tax to Govt as per applicable gst rate on Goods.

The receipt need to pay Rs 10000/- to the URD ( the supplier ) bsz Rs 10000 is basis value for Goods excluding GST.

Now RCM is deferred by the Govt of India up to 31.03.218

thanks a lot .......all of you.......