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Reverse charge for composition scheme taxpayer

suraj jangid (article) (54 Points)

02 October 2017

is reverse charge is applicable on gst composition scheme taxpayer in case of shop rent, transportation and sundry expenses.

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5 Replies

NITIN MANGLA (ACCOUNTANT) (278 Points)
Replied 02 October 2017

yes commercial rent is applicable for rcm so if u pay shop rent without gst to land owner then you have to pay rcm 18% on rent amount. as well as transport service too

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Mukesh Kumar (Accounts Manager) (1466 Points)
Replied 02 October 2017

yes gts is payble under rcm if applicable

suraj jangid (article) (54 Points)
Replied 02 October 2017

and what about expenses for composition dealer..... and is composition dealer can pay gst on rent under rcm basis.

NITIN MANGLA (ACCOUNTANT) (278 Points)
Replied 02 October 2017

yes any one who pay commercial land rent liable for rcm on rent and if he pay residential land rent then no need to pay rcm. becauae residential rent is fully exempt.

RAJA P M ("Do the Right Thing...!!!") (127984 Points)
Replied 02 October 2017

No more difference for RCM related expenses to Regular dealer and Composition dealer. Both are registered under GST also RCM related activities applicable to both RD dealer....