I heard that no need to pay tax on RCM on supplies from an unregistered dealer if purchase is less than Rs. 5000.
Government of India has notified this.
Whether the limit of 5000 is applicable on daily or monthly or yearly basis?
Government through twitter Q&A clarified that:
It has been decided that Rs. 5000/- per day exemption will be given in respect of supplies received from unregistered person. For supplies above this amount, a monthly consolidated bill can be raised.
I have not seen any official notification and twitter answer do not have valid legality.
Rs. 5,000 limit is on daily basis.
5,000 limit per Day from all Unregd Suppliers put together: Circular dt 28.06.2017
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