Liability to pay rcm-legal fees
This query is : Resolved
19 March 2014
whether stax under rev. charge mechanism is payable for creation of provisional liability of legal fees? at the time of booking of prov. liability , invoice was not received (i.e. FY 2012-13). so RCM for prov. liability booking was not paid in FY 2012-13. Is it wrong?
19 March 2014
Hi Shaily,
Please clarify me the following points.
1) Whether The creation of provision is for the services provided or agree to be provided?
2)Whether invoice is issued by the service provider?
3) Whether payment is made including any advance payment to the service provider?
Please clarify me the following points.
1) Whether The creation of provision is for the services provided or agree to be provided?
2)Whether invoice is issued by the service provider?
3) Whether payment is made including any advance payment to the service provider?
20 March 2014
Hi Sir,following is the case,
1) Creation of provision is for service which is continuous in nature- legal opinion in various cases
2) there are five invoices. Invoice dates are as follows
a- 25.5.2012
b- 11.5.2012
c- 22.8.2012
d- 01.06.2012
e- 25.7.2012
3)Date of Payment after adjusting provisional liability are as follows
a- 23.7.2013
b- 23.7.2013
c- 28.9.2012
d- 19.9.2012
e- 19.9.2012
4) We are PSU. and Stax under RCM is not paid in any of the above case.
I request to let me know the cases wherein we are liable to pay Stax under RCM.
Thanking you
-Regards
CA Shaily Shah
1) Creation of provision is for service which is continuous in nature- legal opinion in various cases
2) there are five invoices. Invoice dates are as follows
a- 25.5.2012
b- 11.5.2012
c- 22.8.2012
d- 01.06.2012
e- 25.7.2012
3)Date of Payment after adjusting provisional liability are as follows
a- 23.7.2013
b- 23.7.2013
c- 28.9.2012
d- 19.9.2012
e- 19.9.2012
4) We are PSU. and Stax under RCM is not paid in any of the above case.
I request to let me know the cases wherein we are liable to pay Stax under RCM.
Thanking you
-Regards
CA Shaily Shah
20 March 2014
The point of taxation is the earliest of the following:
1.Date of invoice
2.Date of completion of provision of service
3.Date of payment
apply this for each and every transaction and arrive the point of taxation and pay under RCM.
Note: RCM on legal service is applicable only if Advocate entities turnover exceeding Rs.10 lakhs in the preceding year
1.Date of invoice
2.Date of completion of provision of service
3.Date of payment
apply this for each and every transaction and arrive the point of taxation and pay under RCM.
Note: RCM on legal service is applicable only if Advocate entities turnover exceeding Rs.10 lakhs in the preceding year
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