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Applicability of RCM On security guard services

CMA.srinivasa reddy (Job) (206 Points)

28 January 2021

hi, please clarify whether the RCM applicable on security guard services. and accounting treament

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (3303 Points)
Replied 28 January 2021

RCM is applicable only when the security service is provided to a registered person. RCM on Security service is applicable only when the supplier of service is any person other than a body corporate. ... An LLP is considered as body corporate as per section 2(d) of Limited Liability Partnership Act, 2008.

Example : for Accounting treatment.

Example of Accounting treatment under GST

Professional service of Rs. 1,00,000/-from XYZ & Co.who is covered under RCM under sec 9(3):-

date on 10-7-2019

Professional fee A/C Dr.	1,00,000/-
CGST – Input Tax RCM Dr.	9000/-
SGST – Input Tax RCM Dr.	9000/-
To CGST – Output Tax – RCM		9000/-
To SGST – Output tax – RCM		9000/-
To TDS on professional fee		10000/-
To XYZ & Co.