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Rcm on legal service

NAGA (ACCOUNTANT) (504 Points)

22 January 2020

Sir,
My client taken legal services from a legal firm. Can I pay rcm for this.?
My client is registered dealer.
Pls clarify rcm applicability, if turnover less than 20 cr. Greater than 20 crore.?

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5 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14165 Points)
Replied 22 January 2020

If legal Firm is Firm of Advocates , then RCM is applicable and GST will be paid by Recipient of taxable services , who is Business entity and located in taxable territory .

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Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 23 January 2020

Yes RCM is applicable . kindly refer Notification 13/2017 CT (R)

Jeevesh (Partner) (35 Points)
Replied 23 January 2020

Not all legal services will be subject to RCM. Only representational services before any court, tribunal or authority is subject to RCM.

NAGA (ACCOUNTANT) (504 Points)
Replied 23 January 2020

OK, thank you sir

Jeevesh (Partner) (35 Points)
Replied 12 April 2020

Kindly note I would like to correct my earlier view expressed. RCM is applicable in your case.
The department as corrected by Corrigendum GSR 1199(E), dated 25-9-2017 to NOTIFICATION NO. 13/2017-CENTRAL TAX (RATE), DATED 28-6-2017 and said the "Legal service" means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority.
Further, as per section 24 persons who are required to pay tax under reverse charge are compulsory required to obtain registration irrespective of aggregate turnover in a financial year exceeds twenty lakh rupees or not.