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Reverse Charge Mechanism (RCM)

A GST mechanism where the recipient of specified goods or services, rather than the supplier, is liable to pay the tax directly to the government.

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Related terms

  • Related Party Transaction

    A transaction between the company and a party connected to it by ownership, control or significant influence — subject to specific identification, approval and disclosure requirements.

  • Residual Value

    The estimated amount an entity would obtain from disposing of an asset at the end of its useful life, after deducting disposal costs.

  • Risk Control Matrix (RCM)

    A working document mapping identified risks to the controls meant to address them, the frequency of each control, and the evidence that it operated — not to be confused with the GST Reverse Charge Mechanism, which shares the same acronym.

  • Rotation of Auditors

    The Companies Act requirement that specified classes of companies rotate their statutory auditor (individual or firm) after a maximum tenure, to preserve independence.

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231 terms in total, or go deeper with working procedures and worked examples in the resource library.

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