When do you have to Pay Tax on Reverse Charge Basis?
Reverse charge is a concept we were familiar with, in the previous tax regime. To put it simply, under reverse charge, the liability to pay tax on a transaction to the Government is on the recipient. Under Service Tax, reverse charge was applicable in the case of specific notified services. Under VAT, in almost every state, on purchases from unregistered dealers, a registered person had to pay tax, on behalf of the unregistered seller. It was also applicable in the case of imports, where the importer had to pay import duties to the Government. Under GST also, reverse charge is applicable in these 3 scenarios: Supply of notified goods and services Imports Purchase from unregistered dealers Supply of notified goods […]