Whats the benefit of reverse charge to govt?
Ankush (Student) (1369 Points)
14 February 2019
If person paying tax takes input of the same what's the benefit of the same to the govt?
5 Replies
Karan
(audit)
(22 Points)
Replied 14 February 2019
No Benefit to govt...it was imposed to transfer liability of tax on particular transaction from one person to another eg rcm on director sitting fees is to be paid by company
Ankush
(Student)
(1369 Points)
Replied 14 February 2019
but company is ultimately going to take input of the same so what's the tax collection benefit?
VINAYAK HEGDE
(accounting & taxation freelancer)
(246 Points)
Replied 14 February 2019
there is not banefitial matter.
only liable person of gst is changed..
i.e receiver not a provider.
only liable person of gst is changed..
i.e receiver not a provider.
Abhishek Gola
(7 Points)
Replied 14 February 2019
Govt has benefit.. If you pay rcm on unregistered purchase by which govt can easily to record your all direct expense and indirect expense by which person cant manipulate the books of accounts in fy.
Trex Gaming_67
(243 Points)
Replied 15 February 2019
For eg. Gst on director's service is paid by the company, directors maY be many. Instead of collecting gst from each individual, its better to collect from one person. I believe that's one of the benefits of RCM.
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