RCM charges refer to Reverse Charge Mechanism charges. The reverse Charge Mechanism is a tax compliance mechanism used in some countries to shift the liability to pay taxes from the supplier of goods or services to the recipient or buyer. Under the Reverse Charge Mechanism, the buyer of goods or services is required to self-assess and pay the applicable taxes on behalf of the supplier.
RCM charges are the taxes or charges that are applicable when the Reverse Charge Mechanism is triggered. These charges are typically added to the invoice or transaction amount and are payable by the buyer of the goods or services.
The application of the Reverse Charge Mechanism and the associated charges can vary depending on the country and its tax regulations. It is important for businesses and individuals to understand the specific rules and requirements related to RCM charges in their respective jurisdictions to ensure compliance with tax laws.