RCM supply

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..... RCM supply
Query (Issue) Started By: - vignesh VSACCOUNTOPRIVATELIMITED Dated:- 3-12-2020 Last Reply Date:- 5-12-2020 Goods and Services Tax - GST
Got 2 Replies
GST
sir there are two terms used under RCM applicable for services and they often create little confusion. " Any business entity located in the taxable territory", "A registered person, located in the taxable te .....

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..... rritory". what do these two terms indicate! why they are interchangeably used! Reply By KASTURI SETHI: The Reply: Both terms indicate as under:- "Any business entity located in the taxable territory", Not only for the purpose of RCM otherwise also two conditions should be qualified : The supply should be in the course or furtherance of business and it should be in taxable territ .....

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..... ory. If the supply is made from 'B' to 'C' RCM will not be applicable and tax will be paid under FCM. There are other examples also ; if supply is made to Govt., RCM is not applicable as supply to Govt. is not B to B. The condition of 'taxable territory' is common for all kinds of supplies for levy of GST. "A registered person, located in the taxable territory". .....

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..... It is very much clear that any person registered with GST department is a business entity and also falls in a taxable territory. Here for the purpose of RCM, a registered may be Proprietorship, Individual, Pvt. Ltd., HUF etc. Regarding the usage of these terms interchangeably, it depends upon specific conditions laid down in a notification for the purpose of levy of GST under RCM.. Reply By G .....

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..... aneshan Kalyani: The Reply: I agree with the views of Sri Kasturi Sir.
Discussion Forum - Knowledge Sharing .....

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