RCM applicable



cutrently which expenses attract RCM ?

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KVO Merau Kutchh

Reverse charge on Specified goods:

The supply of goods under reverse charge mechanism has notified vide Notification No. 4/2017-Central Tax (Rate) dated 28.06.2017 as amended from time to time under Section 9(3) of the CGST Act, 2017 and the same is reproduced in the below Table:-

S. No. Tariff item, Sub-heading, or Chapter. Descripttion of Supply of Goods Supplier of Goods Recipient of Supply
(1) (2) (3) (4) (5)
1. 0801 Cashew nuts, not shelled or peeled Agriculturist Any registered person
2. 1404 90 10 Bidi wrapper leaves (tendu) Agriculturist Any registered person
3. 2401 Tobacco leaves Agriculturist Any registered person
4. 5004 to 5006 Silk yarn Any person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk yarn Any registered person
4A 5201(Effective from 15-11-2017) Raw cotton Agriculturist Any registered person
5.   Supply of lottery State Government ,Union Territory or any local authority Lottery distributor or selling agent.

 

Explanation. – For the purposes of this entry, lottery distributor or selling agent has the same meaning as assigned to it in clause (c) of Rule 2 of the Lotteries (Regulation) Rules, 2010, made under the 2 provisions of sub section 1 of section 11 of the Lotteries (Regulations) Act, 1998.

6 Any Chapter( Effective from 13-10-2017) Used vehicles seized and confiscated goods, old and used goods, waste and scrap Central Government, State Government, Union territory or a Local authority. Any registered person
7 Any Chapter( Effective from 28-05-2018) Priority Sector Lending Certificate Any registered Person Any registered Person

 


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KVO Merau Kutchh

Reverse Charge on Specified Services:

The supply of services under reverse charge mechanism has notified vide Notification No.13/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time ) and the list Services that will be under reverse charge as notified by the Central Government is given below Table:-

Sr. No. Category of Supply of Services Supplier of Service Recipient of service
1 2 3 4
1 GTA Services :

 

Supply of Services by a goods transport agency (GTA) who has not paid central tax @ 6% in respect of transportation of goods by road to-

(a) any factory registered under or governed by the Factories Act,1948;or

(b) any society registered under the Societies Registration Act,1860 or under any other law for the time being in force in any part of India; or

(c) any cooperative society established by or under any law; or

(d) any person registered under CGST / IGST/SGST/ or UTGST Act; or

(e) anybody corporate established, by or under any law; or

(f) any partnership firm whether registered or not under any law including association of persons; or

(g) any casual taxable person; located in the taxable territory.

“Provided that nothing contained in this entry shall apply to services provided by a goods transport agency, by way of transport of goods in a goods carriage by road, to, (a) a Department or Establishment of the Central Government or State Government or Union territory; or

(b) local authority; or

(c) Governmental agencies, which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 and not for making a taxable supply of goods or services.

Goods Transport Agency (GTA) (a) any factory registered under or governed by the Factories Act,1948; or

 

(c) any society registered under the Societies Registration Act,1860 or under any other law for the time being in force in any part of India; or

(d) any cooperative society established by or under any law; (d) any person registered under CGST / IGST/SGST/ or UTGST Act; or

(e) anybody corporate established, by or under any law; or

(f) any partnership firm whether registered or not under any law including association of persons; or

(g) any casual taxable person; located in the taxable territory.

 

 

2

Legal Services

 

Services provide by an individual advocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly.

Explanation: – ‘legal service’ means any service provided in relation to advice, consultancy or assistance in any manner and includes representational services before any court, tribunal or authority.

 

An individual advocate including a senior advocate or firm of advocates Any business entity located in the taxable territory.
3 Arbitral Services

 

Services supplied by an arbitral Tribunal to a business entity.

An arbitral Tribunal Any business entity located in the taxable territory.
4 Sponsorship Services

 

Service provided by way of Sponsorship Service to anybody corporate or partnership firm.

Any person Anybody corporate or partnership firm located in the taxable territory.
5 Government Services:

 

Services supplied by the Central Government, State Government, Union territory or local authority to a business entity excluding the following :

(A) renting of immovable property service, and

(B) services specified below:-

(i) services by the Department of posts by way of speed post, life insurance, express parcel post and agency services provided to a person other than Central Government, State Government or Union territory or local authority ;

(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;

(iii) transport of goods or passengers.

Central Government, State Government, Union territory or Local Authority Any Business Entity located in the taxable territory.
5A

 

 

Services by the Government

 

Services supplied by the Central Government , State Government , Union territory or local authority by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act,2017 ( with effect from 25-01-2018.

Central Government, State Government, Union territory or Local Authority Any person registered under the Central Goods and Services Tax Act.2017
6 Services by the Director

 

Services supplied by a director of a company or a body corporate to the said company or the body corporate.

A director of a company or a body corporate A company or a body corporate located in the taxable territory
7 Insurance Agent Service

 

Services provided by an insurance agent to person carrying on insurance business.

An Insurance Agent Any person carrying on insurance business, located in the taxable territory.
8 Recovery Agent Service

 

Services provided by a recovery agent to a banking company or a financial institution or a non-banking financial company.

A Recovery Agent Banking company Financial institution or a non-banking financial company, located in the taxable territory.
9 Copyright Service

 

Supply of Services by an author , music or the like by way of transfer or permitting the use or enjoyment of a copyright of a covered under clause (a) of sub-section (1) of Section 13 of the Copyright Act, 1957 relating to original literary, dramatic, musical or artistic works to a publisher, music company, producer or the like.

Author or music composer, photographer artist, or the like. Publisher, Music company, producer or the like, located in the taxable territory.
10 Reserve Bank Services:

 

Supply of services by the members of Overseeing Committee to Reserve Bank of India ( Effective from 13.10.2017)

Members of Overseeing Committee constituted by the Reserve Bank of India.

 

 

Reserve Bank of India
11 Services by DSAs:

 

Services supplied by individual Direct Selling Agents ( DSAs) other than a body corporate partnership or limited liability partnership firm to bank or non-banking financial company ( NBFCs) Effective from 27.7.2018)

Individual Direct Selling Agents (DSAs) other than a body corporate, partnership or limited liability partnership firm. A banking company or a non-banking financial company, located in the taxable territory.
12 Services provided by business facilitator (BF) to a banking company. Business facilitator(BF) A banking company, located in the taxable territory.
13 Services provided by an agent of Business correspondent (BC) to business correspondent (BC). An agent of business correspondent (BC). A business correspondent, located in the taxable territory.
14 Security Services ( services provided by way of supply of security personnel) provided to a registered person:

 

Provided that nothing contained in the entry shall apply to,- (i)(a) a Department or Establishment of the Central Government or State Government or Union territory, or (b) local authority, or (c) Government agencies, which has taken registration under the Central Goods and Services Tax Act, 2017( 12 of 2017) only for the purpose of deducting tax under section 51 of the said Act and not for making a taxable supply of goods or services, or (ii) a registered person paying tax under section 10 of the said Act.

(Sl.No. 12 to 14 – vide Notification. No.29/2018-Central Tax (Rate) dated 31.12.2018. w.e.f.1.1.2019)

Any person other than a body corporate. A registered person, Located in the “taxable territory.”

 


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KVO Merau Kutchh

RCM on the supply from unregistered person (suspended):

Provisions of reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and sub-section (4) of section (5) of the IGST Act, 2017 and sub-section (4) of section 7 of the UTGST Act, 2017 have been amended to empower the Government to notify class of persons who would be liable to pay tax under reverse charge with respect to specified categories of goods or services or both. On the recommendations of the GST Council made in its 28’th meeting held on 21.07.2018, the said provisions have been suspended for the CGST Act, IGST Act and the UTGST Act till 30.09.2019. (Notification Nos.22/2018-C.T.(Rate) dated 6’th August’2018. 23/2018-IGST (Rate) dated 6’th August’2018 and 22/2018-Union Territory Tax (Rate) dated 6’th August’2018 respectively).

Courtesy: Ad. Ramesh Chandra Jena (Tax guru)


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