Section 16(4) vs RCM

[NARENDER YARRAGORLA]

For the FY 2020-21, we have failed to pay RCM on Freight, Can we pay and claim ITC in FY 2021-22 sir

AI Summary

Can Reverse Charge Mechanism on Freight for 2020-21 be Paid with Interest in 2021-22? ITC Claim Possible. A query was raised regarding the payment of Reverse Charge Mechanism (RCM) on freight for the fiscal year 2020-21, questioning if it could be paid and Input Tax Credit (ITC) claimed in FY 2021-22. One respondent advised that although the payment period has lapsed, the payment can still be made with interest, and ITC can be claimed without restriction under Section 16(4). Another respondent suggested referencing a previous discussion for more details. Other replies indicated that pursuing this without litigation might be challenging, and the taxpayer should consider their risk if challenging the tax department.