one of our director, he is given factory for rent to our company. eg. factory rent 3 lakhs. he got GST registration also.my question is this transaction under RCM? As per specified RCM list directors service also RCM. So our company liability to GST . Please send RCM invoice format
13 September 2017
You can receive invoice for the Rent if he is registered under GST. Then you don't want pay tax under RCM basis...
Also you can use your Sales invoice format as RCM related invoice. Note just RCM invoice... That's all...
13 September 2017
Incase director raise the invoice with GST ( Obviously he has to raise since he registered under GST) then this transaction is not covered under RCM. incase he is not giving any invoice or raising without charging service tax then GST apply on this under RCM basis
14 September 2017
I agree with CMA Ramesh Krishnan. The only thing is that as per the law since director's services to the company is covered under specific RCM under section 9(3), only the receipient is liable to pay on reverse charge basis, the director ideally should not raise a taxable invoice. Section 9(3) is irrespective of whether the supplier is registered or not.
CAclubindia
