Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

RCM Liability

subhagan sreerangam (7059 Points)

15 October 2024

A Registered taxpayer Paid to Advocate fees ₹ 4500 on 26/10/2020.In this Case the taxpayer have an any liability payable through RCM?

Reply
Follow
Share

3 Replies

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8603 Points)
Replied 16 October 2024

As per the GST regulations, Reverse Charge Mechanism (RCM) applies to certain services, including legal services provided by advocates. Since the taxpayer is a registered entity, they are required to pay GST on the advocate fees under RCM. In this case: - The taxpayer paid ₹4500 to the advocate on 26/10/2020. - The GST rate applicable would be 18% (as per the current GST rate for legal services). - The taxpayer needs to pay GST on the advocate fees under RCM. Calculation: - GST amount = ₹4500 x 18% = ₹810 - Total liability = ₹4500 (advocate fees) + ₹810 (GST) = ₹5310 So, yes, the taxpayer has a liability of ₹810 payable through RCM, which needs to be deposited along with the GST return. Additionally, the taxpayer may need to report this expense in their GST returns and claim input credit if eligible.

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8603 Points)
Replied 16 October 2024

As per the GST regulations, Reverse Charge Mechanism (RCM) applies to certain services, including legal services provided by advocates. Since the taxpayer is a registered entity, they are required to pay GST on the advocate fees under RCM. In this case: - The taxpayer paid ₹4500 to the advocate on 26/10/2020. - The GST rate applicable would be 18% (as per the current GST rate for legal services). - The taxpayer needs to pay GST on the advocate fees under RCM. Calculation: - GST amount = ₹4500 x 18% = ₹810 - Total liability = ₹4500 (advocate fees) + ₹810 (GST) = ₹5310 So, yes, the taxpayer has a liability of ₹810 payable through RCM, which needs to be deposited along with the GST return. Additionally, the taxpayer may need to report this expense in their GST returns and claim input credit if eligible.

subhagan sreerangam (7059 Points)
Replied 16 October 2024

I pay to Advocate ₹4500 only

CCI Pro

Recent Topics

More recent discussions | Post

Related Threads

Popular Discussion

Start a New Discussion

CCI Pro

Meet our PRO Members

Muralikannan S

PRO MEMBER

Sunil

PRO MEMBER

Tkumaaravelu Fca,

PRO MEMBER

Sanjay Madhrani

PRO MEMBER

prashant Kumar Singh

PRO MEMBER

Subscribe to CAclubIndia Pro

Trending Online Classes

GST Demands and Recoveries: Navigating Through the Tides

CA Nipun Arora

Enroll Now

17 July 2025
Fake ITC & Penalties under GST Act - Patanjali Ayurveda Case

CA Shruti Singhal

Enroll Now

25 July 2025
Certification Course on GSTR-3B Reconciliation with GSTR-2B through AI Tools

CA Deepak Gupta

Enroll Now

15 July 2025

view all classess

Follow us

Subscribe to the latest topics :

Search Forum:

Forum Home

Popular Threads

Recent Posts

Unreplied Threads

Settings