Reverse charge pyment
ANKIT JAIN (180 Points)
25 April 2018
Can I adjust Reverse Charge payment by ITC
ANKIT JAIN (180 Points)
25 April 2018
CA Rashmi Gandhi
(Chartered Accountant)
(86318 Points)
Replied 25 April 2018
RAJA P M
("Do the Right Thing...!!!")
(128085 Points)
Replied 25 April 2018
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
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