Reverse charge pyment
ANKIT JAIN (180 Points)
25 April 2018
Can I adjust Reverse Charge payment by ITC
3 Replies
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 25 April 2018
No you have to made payment in cash only.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 25 April 2018
No...
RCM related tax will be payable only on Cash...
RCM related tax will be payable only on Cash...
Ajay
(CA Job)
(512 Points)
Replied 25 April 2018
Dear Ankit
Your question is whether you can pay tax under RCM by utilising ITC, correct?
Tax under RCM can be paid only through Electronic Cash Ledger and not by utilizing Electronic Credit Ledger. That is to say, it has to be paid in cash and not by utilizing ITC available. It is so for the simple logic that, by definition, tax paid under RCM is an “input tax” and not an “output tax”. ITC can be used to pay only “output tax” and not “input tax”. [See Sec 2(62)/(82)].
Regards
Ajay
Recent Topics
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
Related Threads
CAclubindia
