Advocate fees rcm

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A private limited company is seeking clarification on Reverse Charge Mechanism (RCM) for advocate fees related to a land purchase. The advocate, not being GST registered, issued an invoice without GST. The company needs to know if RCM applies, the applicable GST rate (which is 18% as per Notification No. 10/2017), and whether to create RCM invoices and payment vouchers. They also have questions regarding cash payment restrictions and the number of payment vouchers required.

sona1

sona1 (Querist)

08 June 2022 We are a Pvt Ltd Company recently we have purchased a Land . For this purpose Our Advocate has done many work i.e. searching Land, create Drafting Deed , complete Final Registration - Stamp Duty work & other Office related work .

Finally our Advocate Submitted us his invoice for Rs. 18,500.00 for Commission, Visiting fees , Clarkage etc Purpose without charge any GST (because Advocate has no GST Number)

Do we have to pay RCM against this above Invoice ? , if yes then what % & Notification Number.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 June 2022 Yes, 18% GST under RCM payable.

Udaya Chandran

Udaya Chandran (Expert)

08 June 2022 Notification No. 10/2017- Integrated Tax (Rate) dated 28th June, 2017

sona1

sona1 (Querist)

09 June 2022 ADVOCATE is not register in GST, So RCM Invoice & Payment Voucher both will be crated ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 June 2022 Yes it's required.....

sona1

sona1 (Querist)

10 June 2022 Note that ADVOCATE fees Rs. 18500.00 we already paid in cash . So RCM invoice No problem, but clear that we will have to do 02 Payment Voucher against ADVOCATE BILL because as per IT Rule Cash daily cash restriction Rs. 10000.00 or ONLY ONE Payment Voucher ?

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