Is RCM applicable on service charges?
Current Situation in Reverse Charge Mechanism (RCM) In the present scenario, the reverse charge mechanism is applicable in service tax for services like Insurance Agent, Manpower Supply, Goods Transport Agency, etc. Unlike Service Tax, there is no concept of partial reverse charge.
How do you calculate RCM?
Example – A trader who is registered in GST takes services of Goods Transport Agency (GTA) for Rs. 10,000. This service is listed under the reverse charge list therefore trader has to pay tax @ 18% on Rs. 10,000 on RCM.
Which services are under RCM?
List of services under RCM in GST
| Nature of supply of services | Supplier of services |
|---|---|
| Services supplied by a person located in non-taxable territory by way of transportation of goods by vessel from a place outside India up to the customs station of clearance in India | A person located in the non-taxable territory |
Who is liable for GST?
In general, the registered supplier of goods or services will need to pay GST. However, in specified cases like imports and other notified supplies, the liability will lie on the recipient under the reverse charge mechanism.
Can we claim ITC on RCM in same month?
Can we claim ITC on RCM in same month? Yes, you can claim the Input Tax Credit on RCM in the same month, when you paid the GST under RCM.
Which expenses are not allowed in GST?
Cases Where Input Tax Credit under GST Cannot Be Availed
- Motor vehicles & conveyances.
- Food, beverages, club memberships and others.
- Services of general insurance, servicing, repair and maintenance.
- Sale of membership in a club, health, fitness centre.
- Rent-a-cab, life insurance, health insurance.
- Travel.
- Works contract.
Is there reverse charge mechanism for service tax?
In the article we have compiled all the provisions and notifications applicable for Abatement on service tax and Reverse charge mechanism. It would be beneficial for all those who are dealing with processing of vendor bills in relation to service tax and is liable to pay service tax under RCM.
Who is liable to pay reverse charge in India?
Under the reverse charge mechanism, instead of service provider, the service receiver is liable to pay (deposit) service tax. But with effect from 1.7
Are there any services that are under reverse charge?
The Council has broadly approved the GST rates for services at Nil, 5%, 12%, 18% and 28%. The list of services that will be under reverse charge as approved by the GST Council is given below.
When to get Yourself registered under Reverse Charge Mechanism?
Under General Charge Mechanism a service provider is required to get himself registered after the limit of Rs.9 Lakh taxable service is crossed. However under Reverse Charge Mechanism a person liable to pay service tax is required to get himself registered within 30 days of the date on which liability to pay service tax arises.