Applicability of RCM on Royalty Deducted in Invoice by Department and also Royalty Paid
please guide me
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Quick Summary
This discussion explores the applicability of the Goods and Services Tax (GST) Reverse Charge Mechanism (RCM) on royalty payments and deductions. It seeks clarification on whether RCM applies when royalty is deducted in an invoice by a department, or when royalty is paid directly. The key question is determining the conditions under which RCM is applicable to royalty, particularly concerning who is paying and the nature of the royalty itself.