RCM on Advocates Fee


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This discussion clarifies whether a charitable religious trust, registered under 12A and GST, needs to charge GST under Reverse Charge Mechanism (RCM) for advocate fees. It confirms that renting of immovable property is considered a business activity under GST, even for a trust, and therefore RCM would apply to advocate's fees.

16 December 2022 A charitable religious trust, registered under 12A of Income Tax Act and registered under GST as a Tax Payer since Renting of Immovable Properties Turnover exceeds 2CR, whether to charge GST under RCM for advocate's fee or exempted ? Is the definition of Business Entity for the recipient of service applicable as it is a charitable trust?

16 December 2022 Yes, renting of immovable property is business as per GST, and as such the RCM would apply.

16 December 2022 Thank you Sir for your reply.

16 December 2022 Most Welcome ...


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