The following documents may help determine the nature and use of the immovable property: (i) property tax demand notice; (ii) electricity bill; and (iii) agreement between the parties. Also, the reverse charge liability on commercial property (as laid in the table above) was introduced from 10.10.2024. Hence, registered persons may wonder whether tax is liable […]
Imposing reverse charge mechanism to collect tax on some services cannot be challenged under Article 14. Also, ITC is available only if the statute permits and to the extent that it does. Denying ITC to service providers (who are not liable to pay tax on output services) is founded on a rational basis which has a clear nexus with the classification since such person has no liability against which ITC can be set off.
Many taxpayers discharge their Goods and Services Tax (GST) liability under the Reverse Charge Mechanism (RCM), on being pointed during audit. This could plausibly be attributed to lack of knowledge on the part of taxpayers. The immediate logical question is whether Input Tax Credit (ITC) can be availed on such GST paid under RCM, irrespective […]
[Reading this article in landscape mode (on mobile phone) is recommended for better experience] Reverse charge mechanism on ‘renting of motor vehicle’ service was introduced from October 01, 2019. Since the complex language used in the notification(s) confused many, the Government substituted the reverse charge entry effective December 31, 2019. To understand the position in […]
[Reading this article in landscape mode (on mobile phone) is recommended for better experience. Also, an update to this post is available at http://vsrca.in/gst/reverse-charge-renting-motor-vehicle-amendment/] Reverse charge mechanism on ‘renting of motor vehicle’ service was introduced with effect from October 01, 2019. Although it has been over 50 days since introduction, the complex and ambiguous language […]