TaxTMI 
TaxTMI 
DEAR SIR
WE ARE PVT LTD COMPANY, WE ARE PAYING 11500 / PER MONTH AS SECURITY CHARGES ( MONTHLY SALARY FOR NIGHT SHIFT ) TO AN INDIVIDUAL . THIS WILL COVER UNDER RCM ? IF WE ARE PAYING GST UNDER RCM , SHL WE TAKE CREDIT ?
RAJESH ACCOUNTANT
09 Jan 2019 
4 Replies 
1389 Views Asked by
Reverse charge mechanism: recipient must pay tax in cash and may claim input tax credit after cash payment.
Reverse charge applies to security services obtained from an individual under the cited notification; the recipient must pay tax under the reverse charge mechanism in cash and may claim input tax credit for that tax in the same return in which the cash payment is made, subject to the standard input tax credit eligibility tests concerning business use and the taxable/exempt nature of outward supplies. (AI Summary)
Reverse charge applies to security services obtained from an individual under the cited notification; the recipient must pay tax under the reverse charge mechanism in cash and may claim input tax credit for that tax in the same return in which the cash payment is made, subject to the standard input tax credit eligibility tests concerning business use and the taxable/exempt nature of outward supplies. (AI Summary)