Concept of RCM (Reverse Charge and Partial Reverse Charge)
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Concept of RCM (Reverse Charge and Partial Reverse Charge)
Last updated at Dec. 13, 2024 by Teachoo
SUMMARY
| Turnover | Legal Requirement |
| Less than 9 Lacs |
No Registration
No Return, No Challan |
| 9-10 Lacs |
Registration Required,
No Challan, But Nil Return Required |
| > 10 Lacs | Registration + Challan + Return all Required |
Normal Charge Service tax is payable on (a) Service provided (b) Advance Received (c) Service provided − Abatement Abated Value (d) Service Provided − Exempt Balance taxable (e) Service Provided − Pure Agent Balance taxable Reverse Charge Service tax is payable on (a) Service Received (b) Advance Paid (c) Service Received − Abatement Abated Value (d) Service Received − Exempt Balance taxable (e) Service Received − Pure Agent Balance taxable Normal Charge Registration Limit If taxable turnover exceeds or likely to exceed 9 lacs then compulsory Registration . Note :- Turnover of all services to be taken . (Exempt service not to be taken) Exemption Limit If turnover up to 10 lacs in previous year , then exempt up to 10 lacs in current year Reverse Charge Registration Limit Compulsory Registration (No minimum limit) . Exemption Limit There is No minimum exemption limit
