RCM for Consultancy

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This query is : Resolved

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This discussion clarifies whether an individual needs to pay Reverse Charge Mechanism (RCM) on an advocate's consultancy invoice for property matters. It's explained that RCM is generally applicable to business entities and individuals conducting business. If the consultancy is for personal purposes and the individual does not have a GSTIN, RCM is not applicable. However, if the individual is engaged in business, GST registration and RCM compliance would be necessary.

H Thakar

H Thakar (Querist)
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06 December 2021 I have hired advocate for consultancy of my property. I have received invoice for the same amounting to Rs 1.5 Lakhs.

Do i need to pay RCM on above. ?

I am individual and the payment will done from my personal account.

Also advice on TDS Compliance of the same

B Sathyanarayanan

B Sathyanarayanan (Expert)
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06 December 2021 if you have a Valid TAN No , deduct TDS and if you are registered under GST and having GSTIN No , u can deduct RCM on Advocate Bill and pay . Since you are individual and paying from Personal account and not holding Valid GSTIN no not necessary to deduct RCM .

Udaya Chandran

Udaya Chandran (Expert)
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07 December 2021 RCM is applicable on all business entity. If you're an individual, doing business, then RCM is applicable, you need to get GST registered if not registered before.

H Thakar

H Thakar (Querist)
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07 December 2021 Dr Mr Udaya

I dont do any business i am retired person