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Reverse Charge Mechanism

Sabu Joseph (Branch Manager) (619 Points)

16 July 2017

Dear Experts
Under Reverse Charge Mechanism whether the reciever of goods or service has to pay tax from out of his pocket or he has to collect it from the unregistered supplier?

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8 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178099 Points)
Replied 16 July 2017

No. He has to pay from his own first, which he can claim back as ITC.

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Anupam Goswami (342 Points)
Replied 16 July 2017

actually you r not paying extra. because u r getting the goods in less price..u need to pat tax then avail itc....

sushit shishul (338 Points)
Replied 16 July 2017

Under RCM the Registered person has to pay tax.

Abdul Latheef (2 Points)
Replied 16 July 2017

will redit of reverse paid get next month ?

Sabu Joseph (Branch Manager) (619 Points)
Replied 16 July 2017

Then what is the benefit to Govt

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Sabu Joseph (Branch Manager) (619 Points)
Replied 16 July 2017

Then what is the benefit to Govt

Sabu Joseph (Branch Manager) (619 Points)
Replied 16 July 2017

First month we are paying, then we are claiming ITC , What is the income to Govt Please Explain Eg.Purchasing goods from "A" an unregistered supplier for Rs.10000 and Tax rate is 28% under RCM. How much I have to pay to "A" for closing his A/C.Whether Rs.10000 or an amount reduced by 28%?