How to Manage Advance Paid for Supplies Attracting Tax on Reverse Charge

We have discussed the scenarios in which reverse charge is applicable in our previous blog . In these scenarios, when recipients make advance payment for supplies on which they are liable to pay tax on reverse charge, they will also have to pay tax on such advance payments. Persons who were registered under Service Tax are familiar with the similar requirement in the Service Tax regime. In this blog, we will guide you on how to effectively treat advance paid for supplies on which tax is to be paid on reverse charge. Document to record when paying an advance under Reverse Charge On paying advance for an order on which you are liable to pay tax on reverse charge, a […]