Reverse charge in VAT

[Rakesh K Paliwal]

Dear member,

Any line 'Reverse charge in VAT' is available in the context of VAT?, If yes please let us know the definition of the same.

Regards

Rakesh K. Paliwal.

AI Summary

Understanding Reverse Charge in VAT: No Mechanism Exists, But Purchase Tax May Apply for Unregistered Dealer Transactions. A forum member inquired about the concept of 'reverse charge' in the context of VAT. A consultant responded, clarifying that there is no reverse charge mechanism in VAT. Instead, they explained that a purchase tax might apply if a dealer buys goods from an unregistered dealer and sells them without paying VAT. In such cases, the buyer is responsible for paying the purchase tax at the applicable rate.