jitendra
(executive account)
(174 Points)
Replied 29 November 2017
Please note that, there is two different aspects of professional fees;
1. Legal Fees - service provided by advocate or firm of advocate
2. Professional fees - service provided by any person in manner of technical expertise
So, point no 1 fall under RCM u/s 9(3) & point no 2 does not fall under RCM
My advise is that, please classified first that what service you have got? then easy to do taxation effect
Siddharth Goel
(Chartered Accountant)
(3026 Points)
Replied 28 June 2018
Hi,
Supplies from unregistered person will attract reverse charge u/s 9(4) of CGST Act, 2017 unless such supplies are specifically exempted.
In case of the employer-employee relationship, if the professional services are provided as part of the Employement Contract, then they shall not be subject to GST altogether.
But if the professional services are out of the purview of the Employement Contract, then GST shall be applicable @ 18% and shall be paid under Reverse Charge Mechanism in case the professional is an unregistered person.
It is to be noted that applicability of Reverse Charge Mechanism (in case of supplies made by unregistered persons to registered persons) has been postponed until 30.06.2018.
tejaswinee
(Student)
(63 Points)
Replied 27 July 2018
Mr. Ashutosh,
Thankyou.. we have soughted this out by paying interest on this and now we are free from any liability.
MANISH KOTHARI
(tax consulatant)
(22 Points)
Replied 16 April 2019
How much will the RCM's liability be after 5000 ??
APOORVA BANGERA
(2 Points)
Replied 18 June 2021
If both service provider and recipient are registered and if the supplier (auditor) wants the recipient to pay gst under reverse charge..can it be done?
CAclubindia
