RCM of manpower or professional services
This query is : Resolved
30 July 2017
hi,
in case I have recd invoices of manpower or professional services without changing GST Tax, so that will it be applicable for RCM?
30 July 2017
If you have more than Rs.5,000 per day then yes and that too on the entire amount if you breach 5000. This will be for all labor and even daily wages if there is no direct employer employee relationship between you and the service provider. This is what I have gathered from Tweets at ASKGST. Problem would usually happen in a place like Delhi where labor comes from UP or Haryana. Then there is no RCM possible because of IGST. The labor has to apply for GST. Unlike GTA services they have not included Manpower in compulsory RCM. Wherever there is compulsory RCM then the limit of Rs.5000 does not apply.
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30 July 2017
Yes... RCM applicable the above said services.
GST rate @ 18%
30 July 2017
Thanks for your prompt answer but when service received from same state / within state ?
30 July 2017
If you received service in same state then you calculate CGST & SGST.
If service received from inter State you calculate IGST....
30 July 2017
Man power service was under RCM in Service Tax. Under GST it is not specifically under RCM like GTA and Lawyer. The Man Power Agency has to charge on forward basis. Therefore the exemption of Rs.5000 per day is available if sourced from unregistered service provider. However, if you exceed Rs.5000 in the day for all unregistered dealers / providers, you have to generate invoices and pay under RCM for the entire amount without deducting the Rs.5000/-.If you engage even a casual labor from interstate, you are not to pay under RCM. You have to pay under RCM only for labor that you pay within the state. For labor from outside the state, the labor has to be registered in his state and charge IGST. There is no provision for IGST on unregistered dealers as interstate supply is compulsorily to be registered for forward charge mechanism. IGST is applicable on reverse charge only for services specifically under reverse charge.
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