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w to calculate reverse chage, and want to know on what are things/expenses are on reverse charge i am working in pvt ltd. company i am very much thankfull, if anyone have deeply knowledge pls guide me

Manoj (accountant) (55 Points)

06 July 2017

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5 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 06 July 2017

All expenses under RCM exept Employer and eployee relationships...

If you ll give labour work to your vendor/your neighbour company. They haven't registered under GST. They give you bill Rs. 10,000

The labour charge Tax rate @ 18%. Rs. 10,000*18%=1800. You ll pay the amount for CGST & SGST on vendors billing day to immediate cash payment. Cash payment means Online payment Rs. 900 to SGST and Rs. 900 to CGST. After the return period you can take ITC on above said amount...

Rs. 5000 allowed per day for the expenses can't RCM... It ll be planned by you..

Attached File : 1391982 20170706131647 list of services under reverse charge 2.pdf downloaded: 129 times

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 06 July 2017

You want any other details...

Ask to here for a single and single queries...

Manoj (accountant) (55 Points)
Replied 06 July 2017

first of all thanks for the giving me the valuable guidence.

Can you pls clerify "Rs. 5000 allowed per day for the expenses can't RCM... It ll be planned by you."

Thanks & Regasrds.

Manoj

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 06 July 2017

Dear Manoj.,

Rs. 5000/day...from petty cash is allowed without RCM....

Ex: Tea, Water and some small ex in a company on daily basis. So, The said ll be use these smallest expenses. I think its totally not more than 5000. (small & medium business).

A system serviced Rs. 5000. If you give Rs. 5000 cash to the person. Its single transaction but limit is over. After all expenses in that day in falling under RCM. So, Its planned by you. You can ask & receive the bill for the service man...