RCM is aimed at combating VAT fraud. It will contribute to increased VAT compliance for the country as a whole. However, it may be burdensome for the small supply receivers. RCM may be useful if the modus operandi is made available on applicability of RCM (i.e., when reverse charging of VAT is required), what are the specified goods and services to be subject to RCM input tax credit mechanism and the records to kept under RCM. The reality is that without section 20 of the VAT & SD Act, 2012 we do not have any rule/guidance concerning VAT RCM. In the case of import of services, the standard practice with regard to VAT on inbound supplies is to collect VAT through a reverse charge mechanism for B2B supplies.
Source: thefinancialexpress.com.bd
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