Reverse charge mechanism
This query is : Open
ABDUL SALAM
(Querist)
04 June 2018
Schenario - A is a TRUSTEE of a Trust and paid Rs. 30,000/- to an advocate (legal fee) on behalf of the trust.
Question - Does A (TRUSTEE) need to pay GST under RCM on the above transaction ?
Question - Does A (TRUSTEE) need to pay GST under RCM on the above transaction ?
CA Padmasri Manyam
(Expert)
04 June 2018
Whos name the bill was issued?
RCM liability is based on the tax invoice (person liable to pay the consideration). The consideration can be paid by third party as well.
if the invoice is in the name of trust then trust is liable to pay tax under RCM.
RCM liability is based on the tax invoice (person liable to pay the consideration). The consideration can be paid by third party as well.
if the invoice is in the name of trust then trust is liable to pay tax under RCM.
ABDUL SALAM
(Querist)
05 June 2018
Thank you for the quick reply....The bill was raised in the name of TRUSTEE (Regular GST Registered).
My understanding....Since the TRUST is not registered under GST, the RCM concept won't raise in the above payment....Please correct me....
My understanding....Since the TRUST is not registered under GST, the RCM concept won't raise in the above payment....Please correct me....
15 June 2018
No... If Trustee not registered under GST then RCM not applicable to Trustee...
Also the service will be treat exempted supply.
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