TaxTMI 
TaxTMI 
RCM on rent Composition tax dealer
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....CM on rent Composition tax dealer<br> Query (Issue) Started By: - KS Bhat Dated:- 17-7-2025 Last Reply Date:- 17-7-2025 VAT + CST<br>Got 2 Replies<br>VAT / Sales Tax<br>Sir/Madam 1. Composition Tax dealer need to pay GST under RCM on rent payment to unregistered owner ? 2. Can Mutual fund distributor can opt composition scheme ? 3. Can GST registered as regular can opt composition scheme any t....
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....ime during the year ? Reply By Fahiyaz Ahmmed: The Reply: 1) Since you are registered under GST and it is assumed that the rented residential property is being used for business purposes, GST under the Reverse Charge Mechanism (RCM) is applicable. You are required to pay GST at the applicable rate (generally 18%) on the rent paid to the unregistered owner. Since you are ....
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....a composition dealer, ITC is not available for you 2) In my view, a Mutual Fund Distributor is not eligible for the Composition Scheme under GST because the nature of their services typically involves working with Asset Management Companies (AMCs) and sometimes through e-commerce-like platforms. These platforms are often required to deduct TDS under Section 52 of the CGST Act, w....
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....hich disqualifies a person from opting for the Composition Scheme as per Section 10(2)(d). 3) No, switching to the Composition Scheme is not allowed during the financial year. If your aggregate turnover in the previous financial year was: Up to ?1.5 crore (in case of supply of goods), or Up to ?50 lakh (in case of services under Section 10(2A)), then you can opt for the Composition Scheme ....
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....by filing Form GST CMP-02 before the beginning of the financial year, i.e., on or before 31st March of the preceding year. Reply By YUWRAJ KOTHARI: The Reply: So far first querry is concerned as per Notification 07/2025, to my knowledge no RCM shall apply<br> Discussion Forum - Knowledge Sharing ....