if registered dealer purchases from registered dealer who is not liable to pay tax due to less turnover whether tax to be paid by buyer on reverse charge
Menu
Reverse charge on purchase from registered dealer
Replies (17)
can't understand your question. every registered dealer has to pay tax except those who falls under RCM i.e. GTA etc.
Dear Gagan, If the person is purchasing from registered dealer (may be volutarily registestered ), then buyer will not pay tax under RCM.
The dealer who is not liable to be registered beacuse of his turnover but he is registered, has to pay tax on his outward supplies.
why he has to pay tax on outward supplies???
if he has less than 20 lakh turnover
my just aim is to save tax is my supplier is registrd
| Originally posted by : Gagan Singla | ||
 |
why he has to pay tax on outward supplies??? |  |
Yes if he has registered so. RCM is for those you are not required to register him self because of turnover..but it is never deny for registration. It's possible that person get benefited more in credit system then not to opt non-registration option. [Similar logic also followed in old central excise]
| Originally posted by : Gagan Singla | ||
|
my just aim is to save tax is my supplier is registrd | |
Not clear your question
| Originally posted by : Gagan Singla | ||
|
why he has to pay tax on outward supplies??? | |
If the dealer is registered he has to pay tax on outward supplies.
Case 1:- If a Registered dealer purchase from registered dealer, registered supplier has to pay tax as normal transaction.
Case 2 If a Registered dealer purchase from unregistered dealer, then registered receipent has to pay tax under rcm.
Case 3 If a Registered dealer purchase from registered dealer(although turnover is < 20 lacs, but has taken registration), then registered supplier has to pay tax.
Even if registered dealers purchased from compounding dealer (who is not authorised to raise taxable invoices) buyers has to pay tax on reverse charge.
gagan.. registered dealer have to pay tax under rcm if he purchased any taxable goods from unregistered dealer if his sales is less then 20l
regarding your aim to save tax.. rcm will not impose any tax burden as it will give them instant tax credit.. only its a apportionment of gst tax payable..
| Originally posted by : janaki suresh B | ||
|
Even if registered dealers purchased from compounding dealer (who is not authorised to raise taxable invoices) buyers has to pay tax on reverse charge. | |
I think RCM applicable only when registered buys from unregistered.
and composite scheme dealer (reg under sec 10) is registered.
hence no RCM applicable when registered buys from Composite Dealer.
can u give any section no for reference for your suggested answer?
Recent Threads
- How to split freelance project income with a frien
- 194a for A y 2024-25
- Compensation & Benefits
- SAC code and GST rate transport services for anima
- Section 44AB is Gone — How Different is Tax
- Capital Gains from Cancelled Residential Project
- Import of goods data in IMS
- GSTr 9 24-25
- Change HSN
- TDS ISSUE ( DIFFERENT SECTION )
Related Threads
CAclubindia
