RCM in case of NEC Charges
This query is : Resolved
Quick Summary
11 April 2022
Dear Sir,
We are a Manufacturig Company, Recently our Bank have raised our Cash Credit(C.C.) Limit and for that work (enhancing the bank limit ), bank papers by prepared by a outsider practitioner (advocate) and that advocate has raised a Bill to us comprises of NEC Charges of Rs. 5000/-.
I want to know whether such charges are covered under RCM and if yes, at what rate we will have to pay RCM.
And under which indirect expense we will have to treat such Expenses in our Books.
We are a Manufacturig Company, Recently our Bank have raised our Cash Credit(C.C.) Limit and for that work (enhancing the bank limit ), bank papers by prepared by a outsider practitioner (advocate) and that advocate has raised a Bill to us comprises of NEC Charges of Rs. 5000/-.
I want to know whether such charges are covered under RCM and if yes, at what rate we will have to pay RCM.
And under which indirect expense we will have to treat such Expenses in our Books.
CA R SEETHARAMAN
(Expert)
11 April 2022
RCM applicable as it's a legal opinion given by advocate. 18% GST applicable ITC can be claimed. Treat it as legal expenses.
CA Puja Sharma
(Expert)
11 April 2022
Yes, RCM will be applicable on advocate fees.
Pay GST @18% and take credit.
Pay GST @18% and take credit.
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