RCM & FCM METHOD FOR TRANSPORTER

[MANAV KEDIA]

CAN A TRANSPORTER REGISTERED IN DIFFERENT STATES OPT FOR FCM IN ONE STATE AND RCM IN ANOTHER STATE and WHAT WILL BE THE PROCEDURE TO TAKE INPUT TAX CREDIT ?

[Ganeshan Kalyani]

The service provider is exempted from taking registration if the service provided by him is covered under reverse charge notification. However, on voluntary basis you can take registration and comply But in my view it is not allowed that you pay tax under forward charge in one state and pay tax under RCM in another.

[KASTURI SETHI]

I support the views of Sh.Ganeshan Kalyani Ji.

AI Summary

Reverse charge mechanism cannot be applied in one state while using forward charge in another for the same transporter. Where a service falls under a reverse charge notification the service provider need not register though voluntary registration is permitted; however respondents stated it is not acceptable to apply forward charge in one State and reverse charge in another for the same category of service, and voluntary registration requires compliance with input tax credit rules.