Can any body clarify whether we can apply Reverse charge mechanism between two GST registered parties. more
Viewed by 971
View all 6 comments Below 6 comments
[ ]( # ) [ ]( # )  [ ]( http://r.sigma-institute.website/mk/cl/f/F_qv95StuYRHyapPbEuSJ1OL0xZ4SS_sW4jN8d9J8huCJX-Xt2IyQq2KtH2zTcPO2uNldGM2UOL2ljEzHI1A2Is1GOA2yan7DneTr07BKk7ABABbl0fLGg3FTZpQxHjWikt8KlqOa9jENef9824NUz8-2Zk6Uzjdp8Ozs4d1g5iWhjdWc7F4wYe2x0OUqHAr-g99ErsOHmxAI5EIgQJzRheBsSRD9OgfTtwqvIs3vQwdGVnbWENTRQe_sjgX1c-Gd0UMpcqSv1U_YolCdMqDyDTnY9M-RH4VhWtva_nZWhojpFY49eyHhftLtalUl9b3-Ch9iU4gZqL_HhiYIbhsYntXaiSLr4EHb2SVWWJRjmoRQ06TlQ )  [ ]( # ) COMPUTER FOR ONLINE CLASSES [ ]( # ) [ ]( http://r.sigma-institute.website/mk/cl/f/bmFpEiqDL-2Ct6mmRPymnyuAmLKYmTa9bGXiNa_PKxaJxoQ_4mQWEMgwu4tM9FTwWLaXQ6MqmR5sqHuN4_ZWAbqO8egCMH7Vi5oOFYfcmNgORzznRrz4cpkGVwlRaqJVSdsXgrpzRRrmd4eYIxJG8RGicLZaJElzfj2tuaILacRX7ZAKLBHM20IwlqHl77JVezcDyaXgOszRe6JFfFWx7aWO5tsqX_w8kZ7zSzoRPTirFegtsizi3PEhDffHpDnCsGPpw8iQcqlfGj2-bhegpIgCaYyKGXNnx4m2q1hNzay8lErrskfh1Kanr9Tcsgj1smRcp71wpsM4f6Ko2Xc04jY0dFaMvLJDRR-5RU4liwIaSsT2LA ) [ ]( # )  For online classes we are providing a complete set of computer with UPS in following specifications: Monitor 15"; Camera & headphone CPU: 160 GB HDD, 2 GB RAM, Core 2 duo Keyboard, mouse UPS ( Electronic voltage stabilizer ) This complete set we offer pan India for Rs. 21000/- ( All inclusive ) One extra 160 GB Hard disk will be supplied free of cost within 5 years, if present becomes in sufficient. All carry "M.I.'s" 1 year warranty.    [ ]( # ) [ ]( http://r.sigma-institute.website/mk/cl/f/snrunjZYRh-uTTxbAsoyhJblk7JY6nFZQSI2ay3AVOd-4rrEzqhpAxOL_AZVf7faaPa8VLk2Xa6svqkrOwOk7Q409BKEXizc40UV7TJ6-MdRVJsQm8nTzB9DjmgIFEzBC8X-QKlC4lbhI0ZxVGtX8TVHUqeAslogcKVTvgsNmIrXoqC-4Xq_DR6w1PMimxyvnJ3abZP90U5cToKztrodHsr4dTZ_sawQADpZkLcaOltY_9EVVXz5xX-oj0towss_pJX_zP3LUU93Z1A17jhjmgoBrWf6SmMwzhRBdEBOkijHvAZdlaa-0UUqk_JiRG6L2AHTeu_1Gp0INFnOGnllK6MvPyidDeUG1xV9WDgMrr0E2l-7Mg ) We understand the hardships...  Hardships of the parents, hardships of teachers, hardships of every such individual who is now compelled to work from home; be it student or the the professional now computer set is must. we decided to help all such people by providing the complete set including UPS to save your machine for longer life. In comparison to laptops desktop is robust & long lasting and also cheap & best ! For getting this deal, please click the button below:  [ Button ]( http://r.sigma-institute.website/mk/cl/f/TJE8XK8f2-Bu7dnVK2Nabl4lCfaepRJa4KmPhqnUq_PrlnLavKHtDUAG82P8-f6VPcpi13qHx-6ivoZdBzZl7eJLDeluurJ0grm6EE0f3ZxrxgzjvAOxvdrBTqZSaxOueYW-BMR3VR3vGNjycP4F363Zp2lSbozf3U3w96Rm9w3ch2gPTLhRNSjBGjbGrI1ZE-etnAhTWNjp3SKl1DZwy0I5WN5HO9JoG7PdHDuKCj8VjMBcoQ3W23CZrLN9TeqJthvpO55gdNMDsHtwo9zIKrbLUFBfZ1MSzH93T1FoOOuJR_XV8I1RfsoCutF7ih2vepGWDEIX3xGGSiR9EefWaoSp7YvfRsphLG3oyibx0nFZc4eWJw ) [ ]( # ) [ ]( # )  SIGMA INSTITUTE Delhi Cell: 9899075161 [ ]( http://r.sigma-institute.website/mk/cl/f/TMRLFeR9prNowlL3gxA5ATQTqCAy8GeJVQUOnEP8iSKRscTRHnwQiZ1kHo7TdigzuNvybEGkzALQrvcg6OV3BQWekz8BmiuApC7Gj-q_T0vkPNSP98twz0vVi47WbD-QMoEQgZZEVdkZQu4Xj1o2WsxNtKeHOuVgWRVr-wX9KrTBxr8H5zi3seBLeSn9c_e-KS9AiKV3_xy20_QGikKjb051D8UbdA7sd__xyX3plRRzyDFZ9N9ODEOuSM6oOiJAiybqyYvqbsjr7P4jcDfbqLZkIGzN9KmV7vNNCnajW3uhJdC-pknYFOZG3P7N_5OmN5xRE9YoczFosbciPAifX07KOnSUGA ) [ ]( http://r.sigma-institute.website/mk/cl/f/O7TNvMNKR9zeJANKfTsiI0JzrJF67lprAz04WgsuOZMsmIyTgpOQFXDBmG0oz2uMx-LdcA-VfcHtgmmpHi7UUOY0PTGiu2fHspj2hIdX4UUWeBljBr3Tp_RCgbVIF4zkSc9hpTHoXeB266mXMHejNNr8kiq60FbQORL7ztcLxD1NxKxrvKKjUyM8-6l_593_JLDUcojdQriK1zoSxHymjQ9_Atawt1m9Kik41kkbp8R182Iu9qN0VlMnu574Sdg2VghwER838W084bOCTUzZiHkJiXukkATDoUo8wNkGZ-4IITTsFStCk9Sg8O7r-syhLsYEWJvSSUelsYtd958-LPlsYQ ) [ ]( http://r.sigma-institute.website/mk/cl/f/jlDWkoggz3ACQed7zVzk3t_Qol2XVtVMZNk3d9os0KWV3LRa15DHxPYy-xhJBcaBkJnSTtt5l0EHQYVc5dyE0JW6p-aaWtTRN5QTcHxg8z4b6sp42dyJUW7uvwobS6TF1gct53v9UtkJ7q_ePewLIxgwCnxI65SC2lsn0-g_VYcb3LtEzIvWOM2C2wOCriRP5sWJFjO1FZ5u0-cCpk3jrUiDrAKTnBrWnNsSGqA1tTPNhOOqqjdxbSK2yjexRcMJJHP2ooyn-T6NP7OUUr2odUW0RmBGv5symSwnXnBESJhl3rtAFalSvl8UXZ_oR7tlkJo_zcyw8uSvSQcb2W4aWDk ) [ ]( http://r.sigma-institute.website/mk/cl/f/5TgwZ3X3fVi7kf40kNh4cO6s3clwXf7Sx0CsuyL_O-sRs2HX-lXWYcqynHxzaNejgtPUW0TYXOvYMbBJ_DwV1CMLwEfmmOzMGavlTj57bT5LxNqeTz5FmecxZSxH4H4HopVDWrISflyyQEDmMyN_7DhrqdwyKzGXjrCh8LweqKLHQVXIMpyOcOXyAt5_H9aZszbRGOSRSzZkxZT-a9yrEZVEIALngIG2T06sMf-gs-fMPgaFPj5PcJ9gLlDDJtmZLTjXi40WeChjZLxRviGV93iA3R4_SGf4TLuwSw46I2_d-G_8aZFl5-znckj4EDMwGvIA8GAulruT0EOC8oi51vfnSMKwAobxCi4lhBw ) [ ]( http://r.sigma-institute.website/mk/cl/f/Fn3gFrR6KsEc0dhciNEw_Vgfs8Xd24nujpg_YPrDji6dfJseKaQS6Met_T5cvBLPRmwym6P62WUQnDbjT24VRa6Sr2EUrGCsYk3tSdSqoJWcMCElD9tnlfvWW1FHTy5SExmNi2QNW_f4lDON9Eb_N5KrjuXb5dYfSQhEH8yUDAVIUJkEahLEoFt_iEf1eQAZRqX8HLZqxPSNP7YKK5IcgMsPfdx4-plW4RfFsPno4bEfBNqJaUw0_ksLgJINxpeNbsBSkU3VjC3CCb_MzK710-fCIeXu1kxq2cysgoDLb6kjkyVeQKuNpKWvvASsgikRnFR2Lh0F_onlxTEna1dgdfCQ4fSJsg ) [ ]( http://r.sigma-institute.website/mk/cl/f/s0HgB_5iOZ9uabYO7qBe9mWuw6vw0IazvFSO029eGzZaeLpgDBqIak-kqRZawQgxvyP2exZb0WCaKbOikb2e_RRzeDkqsmdoO5C84bWN1H6sxtaM4R28WXuu364paieaIyXhyztbC12o0OuyhU7-2iRYJLrJg9J8iOIm7zZpotsbU-ntTGBX0e0cGalTdVVf8A79-zblPmSwIRATsYZMfCGMyxm7hXHq0yLkdgysFsY1GALIEbnKtK3Rv2jx9uJFxnIlYHLPRYDzYPQUZwJ11mVXoMy3fTTLLlDEkpZrNK2RDSwIbK9b-OGnS1F9MTmNKBykEwbdSo0xMDix5VPzKoXTcW3vdKx7KLlQ4OPEJYOeNecAoh2lIruaOKXDhyg5XifcuYaKglCvpRw7sbE ) [ ]( http://r.sigma-institute.website/mk/cl/f/G_IkBavygqHz6Xyoqo8C4eYpnSztRu9FF9sKhzqgEVlazM32qUlkQRHwzLTWFrhWe3nVkfUSyFeBHAF66JqxC-q5V7F7_lgstLG5JO9-lzUtYP3ajHrsqOIIxtSuyT1Iseucw5KOWCVjTVtmAYsGx5JtTGKXxkomvRa0lB_GJgGBIbmW6p9igihdEV-v5cNefp_TiaX18Ql87TItfN2EMaCRXzL_FRKorcxF4RZPsrfo0_xVxGtwuNXpttRyhmbPlTuaXCYFXev_ITSx5camPfcpFMVKkQXaY4nogf7dgoOsru_iEzv80GK1Xg-ucD0hzIjV5xvucxf3SHEr1vhcqBdXNctz9yhtjR3vygns ) [ ]( http://r.sigma-institute.website/mk/cl/f/ep8sYXL3Kpr2HpWpqaKAtV6fPK3LfhhuduY3jI9JuU3Ce6MazlRSkPyrecDFeyzmVmui4Czg9PWsUQpbK1hNgTEE8mmrQo-QZpNfpALdKylBnL2tvn-8kkZRohx-XBy5EmratMZ2-jz0BXq5Do7EIZsexqaECx92RUHALNPGWLm1dJX9ssSgdqtXoIiyqna4feHwZwEdXWwdWsij9xDkyoeqTw8O3emzKOAjz7CapAyOSzvqNY1UDGwIbvuluB9BN6xqnwTdGKFvQGuHczL56bHc02rOa0dWyF4DWvyUehngfazPhhf4x6FqlslN9lSqs_xFFJwixrey83eTdHY8zfT6Aqc-qVofhb-2 )  [ ]( # )  You received this email because you are registered with Sigma Institute  [ Unsubscribe here ]( http://r.sigma-institute.website/mk/un/oMmmBJe-ea48KYEEflvaveUQc2gwfzYUocTuIvNoBK4DdVs5cjymROTZB-_DnyRCNjg41aX2LPKUGOhLeukrk5Mh14592GkoonnhLRlLWiseY4n3ZoR_U3YEUcFvF3MhowZ7Ip8OVyA8dlkoyW_-KELgNCYaWGTFahBLdQhLRQ-APjSj4RJOBnrgUwh-JJroP96z_U5Yln_cMSISb1ZiH4RDBRc )  [ ]( # )  © 2020 Sigma Institute  more
Oct 31
RCM works only where either of the party is not registered or if the parties turnover is below the gst limit, if registered then RCM will not come into picture!!!! more
Sep 07
Reverse charge means, some services define in law on which tax will be paid by recipient. Like transport service, service or supply received from in register dealer, advocate service etc. It is mandatory to pay tax by recipient in gst under reverse charge service received. And one more important thing the person who receipt reverse charge service like advocate etc, has to register with gst. In above asked questions both can pay tax on there availed services under RCM. For any further query mail me or call rajnish_singh54@rediffmail.com 9716406865 Visit www.yourhealthmyeffort.com more
Sep 06
Thanks for your reply Mr. Rajanish Singh ,
Both paying tax is going to be double tax na.
My question is if any one them can pay Tax (either Seller or Buyer through RCM ) ? more
Both paying tax is going to be double tax na.
My question is if any one them can pay Tax (either Seller or Buyer through RCM ) ? more
Sep 08
1. Reverse Charge Means that the seller does not remit the GST/CGST/SGST while selling to the buyer. The seller has to submit a return with those details giving the address, and GST Number of the buyer. 2. As far as both being registered, YES, they can use the Reverse Charge Mechanism. The seller provides the invoice with details of the GST charged, and a declaration that he has not remitted the taxes on the goods/services, allowing the buyer to claim Input Credit, when the transaction proceeds further. Please see this : http://www.cbec.gov.in/resources//htdocs-cbec/gst/reverse-charge-mechanism-08aug2017.pdf;jsessionid=8169FE45702BF9F4432CF4EAB662782E more
Sep 06
Dear Muralidhar garu, Thanks for your appropriate reply , can you share any documental proof for your 2nd point mentioned. I could not get that clarity at the CBEC link provided by you. more
Sep 08
Sir, Small commercial building owners whose annual rental income is less than 20 lacs need not registered under GST Act.In the rental agreement the lessor agreed to pay all taxes demanded by state Govt or Central Govt.Here as a small business man I need not registered under GST. No demand for any gst tax is raised by any Govt.,The tennant on the other hand deduct the GST tax from my rent and pay to the Govt.Further they get back the tax paid by RCM.Is it proper or lawful.We small business people are suffering.We are in problem.My annual gross income is less than 6 lacs.From that I have to meet out Property Tax,Drainage Tax,Water Tax, Income Tax and other taxes.
May I request you to give some solution to come out from this problem and oblige.
With Kind regards,
Natarajan,saptharishi2@yahoo.co.uk 9245730898 more
May I request you to give some solution to come out from this problem and oblige.
With Kind regards,
Natarajan,saptharishi2@yahoo.co.uk 9245730898 more
Sep 07
Dear Sir
The folloe
wimg answers all your querries.
Imagine a class with half the students very boisterous and naughty with little respect for school rules. The other half of the class that follows all the instructions diligently also gets punished for creating a racket, when the principal makes his customary rounds around the school. To avoid the punishment, the goody-goody bunch must make sure that the mischievous ones behave properly.
The situation is similar under the soon-to-be implemented Goods and Services Tax (GST) regime. Every business has to ensure that its suppliers, of both goods and services, are paying the right amount of taxes on time. This is accomplished through the reverse charge mechanism.
What is it?
The GST has to be typically paid by the supplier of goods and services. But in some cases, the liability to pay the tax falls on the buyer. This reverse charge is, however, applicable only under certain circumstances. The most common instance is when a business buys goods or services from a supplier who is not registered to pay GST.
Let’s assume that business A that is GST-compliant buys goods worth ₹100 from business B that is not registered to pay GST. If the GST on the goods supplied is ₹5, then business A, instead of business B, will have to pay ₹5 to the Government. Business A can, however, claim input tax credit of the GST payment of ₹5, when it sells the goods to its client.
Besides purchases from an unregistered supplier, the reverse charge kicks in in other circumstances as well. An importer is liable to pay the GST under the reverse charge mechanism. Also government departments making payments to vendors above a specified limit (₹2.5 lakh under one contract) are required to deduct tax (TDS) and e-commerce operators are required to collect tax (TCS) on the net value goods or services supplied through them.
Why is it important?
The best part about GST is its self-policing mechanism. The Centre is trying to check tax evasion and expand the tax net through couple of clauses in this tax regime. First, seamless flow of input tax credit is possible only when all the suppliers of a business pay GST. So each business will make sure that its suppliers have paid the GST so that they can take input tax credit.
Reverse charge is an additional check. By putting the burden of paying the tax on the buyer, in cases where the supplier does not pay GST, the Government is gently coercing all businesses to sign up for GST.
The major hindrance for the tax department in going after tax evaders is shortage of man-power. With all resources being allocated to chase large tax evaders, its difficult to check the small evaders. This self-policing mechanism is, therefore, expected to do the trick for the government, helping it grow the tax base as well as tax collection.
Why should I care?
If you run a business, you need to hurry and ensure that all the entities who supply you goods and services are registered for GST. If they aren’t, you will have to pay the GST on their behalf. This will increase your paper-work and can cause cash-flow issues as well.
If you are toying with the idea of escaping the GST net by misstating your turnover, to show that it is below the threshold limit, or through some other means, think again. With the reverse charge falling on the buyer, your order book might shrink as companies would prefer to deal with only those entities who are registered for GST.
The bottomline
It’s time to reverse wrong strategies and get GST compliant more
The folloe
wimg answers all your querries.
Imagine a class with half the students very boisterous and naughty with little respect for school rules. The other half of the class that follows all the instructions diligently also gets punished for creating a racket, when the principal makes his customary rounds around the school. To avoid the punishment, the goody-goody bunch must make sure that the mischievous ones behave properly.
The situation is similar under the soon-to-be implemented Goods and Services Tax (GST) regime. Every business has to ensure that its suppliers, of both goods and services, are paying the right amount of taxes on time. This is accomplished through the reverse charge mechanism.
What is it?
The GST has to be typically paid by the supplier of goods and services. But in some cases, the liability to pay the tax falls on the buyer. This reverse charge is, however, applicable only under certain circumstances. The most common instance is when a business buys goods or services from a supplier who is not registered to pay GST.
Let’s assume that business A that is GST-compliant buys goods worth ₹100 from business B that is not registered to pay GST. If the GST on the goods supplied is ₹5, then business A, instead of business B, will have to pay ₹5 to the Government. Business A can, however, claim input tax credit of the GST payment of ₹5, when it sells the goods to its client.
Besides purchases from an unregistered supplier, the reverse charge kicks in in other circumstances as well. An importer is liable to pay the GST under the reverse charge mechanism. Also government departments making payments to vendors above a specified limit (₹2.5 lakh under one contract) are required to deduct tax (TDS) and e-commerce operators are required to collect tax (TCS) on the net value goods or services supplied through them.
Why is it important?
The best part about GST is its self-policing mechanism. The Centre is trying to check tax evasion and expand the tax net through couple of clauses in this tax regime. First, seamless flow of input tax credit is possible only when all the suppliers of a business pay GST. So each business will make sure that its suppliers have paid the GST so that they can take input tax credit.
Reverse charge is an additional check. By putting the burden of paying the tax on the buyer, in cases where the supplier does not pay GST, the Government is gently coercing all businesses to sign up for GST.
The major hindrance for the tax department in going after tax evaders is shortage of man-power. With all resources being allocated to chase large tax evaders, its difficult to check the small evaders. This self-policing mechanism is, therefore, expected to do the trick for the government, helping it grow the tax base as well as tax collection.
Why should I care?
If you run a business, you need to hurry and ensure that all the entities who supply you goods and services are registered for GST. If they aren’t, you will have to pay the GST on their behalf. This will increase your paper-work and can cause cash-flow issues as well.
If you are toying with the idea of escaping the GST net by misstating your turnover, to show that it is below the threshold limit, or through some other means, think again. With the reverse charge falling on the buyer, your order book might shrink as companies would prefer to deal with only those entities who are registered for GST.
The bottomline
It’s time to reverse wrong strategies and get GST compliant more
Sep 07
Reverse charge means the burden of paying the tax has to be borne by the service receiver. For ex .
In normal transaction a if i charge the GST for my professional services to my client. My client will pay me full amount including GST and i will pay that GST to GOVT accordingly. For reverse charge, I will only bill my client my fees amount excluding GST and he will calculate the GST on my fees and pay to the govt instead of paying me.
So following are the circumstance where reverse charge is applicable
1. When govt notifies certain transactions or service on which it will attract, such as Advocate services
2. When you buy from a unregistered dealer over rs. 5000 in a day form within the state
3. When you import services
4. When you are buying from a person who is unregistered from the other state (inter state transaction) more
In normal transaction a if i charge the GST for my professional services to my client. My client will pay me full amount including GST and i will pay that GST to GOVT accordingly. For reverse charge, I will only bill my client my fees amount excluding GST and he will calculate the GST on my fees and pay to the govt instead of paying me.
So following are the circumstance where reverse charge is applicable
1. When govt notifies certain transactions or service on which it will attract, such as Advocate services
2. When you buy from a unregistered dealer over rs. 5000 in a day form within the state
3. When you import services
4. When you are buying from a person who is unregistered from the other state (inter state transaction) more
Sep 06
To put it very briefly, when the person supplying the service is not able to collect and pay GST (some cases even if he is able to also (like transport service to a company) then the service receiver has to pay the tax under Reverse Charge Mechanism. As far as my memory and knowledge goes it all started when the lorries all over India went on a strike against the levy of service tax that this system took birth. Also if you consult a lawyer and in a few other cases also the tax is payable under reverse charge. The person receiving the service pays the tax and no the person supplying the service. What the Government cannot get 'sidhi ungli' it gets by making the 'ungli tedi'. more
Sep 06
