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
Gagan Singla (564 Points)
17 June 2017if 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
Avik Chanda
(Accountant)
(175 Points)
Replied 17 June 2017
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 17 June 2017
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.
Gagan Singla
(564 Points)
Replied 17 June 2017
CA Bhargav Nathwani
(CA in Practice)
(8307 Points)
Replied 17 June 2017
| 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]
CA Bhargav Nathwani
(CA in Practice)
(8307 Points)
Replied 17 June 2017
| Originally posted by : Gagan Singla | ||
|
my just aim is to save tax is my supplier is registrd | |
Not clear your question
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 17 June 2017
| 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.
Lalit Nagpal
(Assistant Manager)
(541 Points)
Replied 17 June 2017
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.
janaki suresh B
(Partner)
(90 Points)
Replied 17 June 2017
CA. RAGHAV GARG
(CHARTERED ACCOUNTANT)
(710 Points)
Replied 18 June 2017
CA. RAGHAV GARG
(CHARTERED ACCOUNTANT)
(710 Points)
Replied 18 June 2017
Ketan Prajapati
(CA FINAL)
(26 Points)
Replied 21 June 2017
| 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?
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
CAclubindia
