TaxTMI 
TaxTMI 
sir
Need clarification about section 269ST of Income tax act 1961 and Prevention of money laundering Act 2002 difference
Ateeq
269ST and PMLA act 2002
26 May 2017 
1 Reply 
1533 Views Asked by
Reverse charge mechanism: applicability on office supplies and GST treatment of employee reimbursement under GST rules.
Distinction is sought between the Income Tax restriction on specified cash transactions and the Prevention of Money Laundering Act 2002's separate AML reporting and criminal regime. For GST, a service sector NBFC asks whether Reverse Charge Mechanism applies to office purchases of printing and stationery and whether Input Tax Credit is available if RCM applies, and how reimbursements to employees who paid suppliers directly are treated for GST, RCM liability, and entitlement to ITC. (AI Summary)
Distinction is sought between the Income Tax restriction on specified cash transactions and the Prevention of Money Laundering Act 2002's separate AML reporting and criminal regime. For GST, a service sector NBFC asks whether Reverse Charge Mechanism applies to office purchases of printing and stationery and whether Input Tax Credit is available if RCM applies, and how reimbursements to employees who paid suppliers directly are treated for GST, RCM liability, and entitlement to ITC. (AI Summary)