Gst on legal services.
This query is : Resolved
25 October 2023
I know that gst on legal services is collected from business as in case of reverse charge mechanism when the advocate firm has not registered but If the business availing legal services is also not registered then no one will pay gst am I right ? and why gst on transfer of FSI index is collected from promoter what is logic behind this ?
15 January 2024
If both the service provider (advocate) and the recipient (business availing legal services) are not registered under GST, then no GST would be applicable in this scenario.
The GST on the transfer of FSI or development rights is generally applicable to the promoter or the builder/developer, not the ultimate buyer. The logic behind this is to bring clarity to the tax liability and collection process.
Promoters who transfer development rights or FSI often do so as part of the real estate development process. The transfer of such rights is considered a taxable supply under GST. The promoter, being the supplier of the service, is liable to pay GST on the consideration received for such transactions.
The logic behind taxing the promoter is to streamline the taxation process, making it easier to administer and collect taxes from a defined set of entities involved in real estate transactions.
The GST on the transfer of FSI or development rights is generally applicable to the promoter or the builder/developer, not the ultimate buyer. The logic behind this is to bring clarity to the tax liability and collection process.
Promoters who transfer development rights or FSI often do so as part of the real estate development process. The transfer of such rights is considered a taxable supply under GST. The promoter, being the supplier of the service, is liable to pay GST on the consideration received for such transactions.
The logic behind taxing the promoter is to streamline the taxation process, making it easier to administer and collect taxes from a defined set of entities involved in real estate transactions.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Opting our of sec 44AD
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Copyright software
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Multiple trade mark
- Transporter Declaration form
- Regarding TDS Applicability For Director Remuneration
- Value of property in capital gain
- LC charges in relation to Asset purchased should be Capitalised ?
- Negative ITC in Table 4(A)(5)
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
