Dear all,
I would like to know your opinion on the following scenarios.
1) Assume 'X Co Ltd.' Which got incorporated in FY 2020-21, but did not have any operations (Aggregate Turnover was NIL) in that year, availed Legal services to the tune of Rs.10 lakhs in FY 2021-22. Does RCM apply on such a transaction?
My Opinion: Does not apply since PY Turnover did not exceed the threshold limit liable for registration.
2) Does exemption notification apply for inward supplies or applies only on outward supplies?
My opinion: Applies for all transactions having a 'Charge of GST' be it Forward Charge or Reverse Charge.
Please do let me knows if there are any case laws/circulars/notifications supporting your opinion. Thank you in advance.
CAclubindia
