RCM applicability if received from registered dealer

ITC / Input 154 views 1 replies
User Avatar

pro badge

42 Points Joined October 2024

Hi Sir/Madam

If a company registered under GST recieves below mentioned services from a registered dealer 

Please advise whether RCM can be applicable, If applicable the applicable rates

  1. Security services
  2. Rent (Building)
  3. GTA Services
  4. Legal services
  5. Director`s Professional services (Not employer employee relationship

Thanks

0 Reply Share Follow
On 15 January 2025 at 19:36 Report
Replies (1)
User Avatar

Master in Accounts & high court Advocate
8756 Points Joined December 2011

To determine if Reverse Charge Mechanism (RCM) is applicable for the services received by the company, let's analyze each service:

1. *Security Services*: - RCM Applicable: Yes - GST Rate: 18%

 2. *Rent (Building)*: - RCM Applicable: Yes, if the landlord is a registered person and the rent is more than ₹20 lakhs per annum - GST Rate: 18%

3. *GTA Services*: - RCM Applicable: Yes, if the GTA operator is a registered person - GST Rate: 5% (with no ITC) or 12% (with ITC)

4. *Legal Services*: - RCM Applicable: Yes, if the advocate or law firm is a registered person - GST Rate: 18%

5. *Director's Professional Services*: - RCM Applicable: Yes, if the director is a registered person and provides services in a professional capacity (not as an employee) - GST Rate: 18%

Please note that RCM is applicable only if the supplier is a registered person under GST. Additionally, the recipient should also be registered under GST to claim ITC.

 

Reply
On 16 January 2025 at 08:39


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading