RCM TO RCM SERVICES

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Anshuman Basu (Querist)
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11 February 2020 Sir
We want to know the A sponsorship service provider Company (Output Service is Sponsorship service and its fall in RCM) is take service from another sponsorship service provider Company, then what is the GST treatment?
Similarly A legal Advocate Firm (Output Service is Legal service and its fall in RCM) is take service from another legal Advocate Firm, then what is the GST treatment?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 February 2020 In such a case RCM applicable to sponsorship provider company.
The RCM on legal services is also applicable when the contract to provide legal services is with another lawyer or law firm. It is also applicable if the provision of services is by another advocate or law firm in taxable territory.

Anshuman Basu

Anshuman Basu (Querist)
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11 February 2020 Sir I am not understand pl clarify details

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 February 2020 RCM applicable on RCM service utilised for providing RCM service.

Sivakanth Badida

Sivakanth Badida (Expert)
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11 February 2020 Legal services provided by a firm of advocates to another firm of advocates is exempt as per entry no 45 (b) (I) of the exemption notification under GST, hence no need for any GST RCM as it is exempt

Sivakanth Badida

Sivakanth Badida (Expert)
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11 February 2020 However in case of sponsorship the recipient has to pay under RCM

Anshuman Basu

Anshuman Basu (Querist)
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12 February 2020 REGARDING TO SPONSHORSHIP SERVICE FALLIN RCM AND WE TAKE ANOTHER SPONSHORSHIP SERVICE FROM ANOTHER SPONSHORSHIO PROVIDE CLIENT THEN WHY WE PAY TAX

Sivakanth Badida

Sivakanth Badida (Expert)
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12 February 2020 Because Sponsorship services provided by any person to a Body corporate is covered by RCM

Anshuman Basu

Anshuman Basu (Querist)
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12 February 2020 Two sponsorship company are body corporate

Sivakanth Badida

Sivakanth Badida (Expert)
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12 February 2020 Any person includes a body corporate or firm , hence body corporate to body corporate sponsorship services will also attract Tax under RCM

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