Master in Accounts & high court Advocate
9610 Points
Posted on 24 September 2024
Based on the information provided, here's a summary: - Job work service provider (Labour) is registered in Maharashtra but provides services in Karnataka. - The service provider is not registered in Karnataka. - The bank account is in Karnataka. - The business entity is registered in Karnataka. - The transaction occurred in Karnataka. Regarding RCM (Reverse Charge Mechanism) applicability: - As the service provider (Labour) is not registered in Karnataka, RCM may be applicable. - Since the service recipient (you) is registered in Karnataka, you may be liable to pay GST under RCM. - However, please verify if the job work service provider has crossed the threshold limit for registration in Karnataka. To ensure compliance, consider: 1. Verifying the service provider's registration status in Karnataka. 2. Determining if RCM applies based on the service provider's registration status. 3. If RCM applies, pay GST on the reverse charge basis.