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RCM on legal services

RCM 411 views 5 replies
Please clarify, a business entity, registered in GST , having turnover of 8 lacks in preceding financial year taken legal services from advocate...

Will he have to pay RCM?

if possible,Please provide reference of GST law also
Replies (5)
Yes , As per Section 24 of CGST Act , person availing services which are under RCM is liable to Obtain Registration mandatory. Hence RCM is to be done
But I have read somewhere that the The Government vide notification 12/2017 – Central Tax (Rate) dated 28.06.2017, has provided that GST would be applicable on reverse charge basis for the following services:

A partnership firm of advocates or an individual as an advocate, other than a senior advocate, by way of legal services to –An advocate or partnership firm of advocates providing legal services;Any person other than a business entities;A business entity with an aggregate turnover up to INR 20,00,000/- (INR 10,00,000 in case of special category states) in the preceding financial year.A senior advocate by way of legal services to:Any person other than a business entities;A business entity with an aggregate turnover up to INR 20,00,000/- (INR 10,00,000 in case of special category states) in the preceding financial year.

YES YOU ARE CORRECT !!!!!, ITS ENTRY NO.45 , NOTIFICATION 12/2017 CT (R), ITS EXEMPTED, NO NEED TO DO RCM

 

ITS EXEMPTED WHEN PROVIDE TO : 1.WHO IS NOT BUSINESS ENTITY 

2. TO BUSINESS ENTITY WHOSE AGGREGATE TURNOVER UPTO 20 LAC IN PRECEDING FY

 

BUSINESS ENTITY MEANS ANY PERSON CARRYING OUT BUSINESS

But as per notification 13/2017 CT(R), if Legal Services by an individual advocate including a senior advocate or firm of advocates to any business entity located in the taxable territory comes under reverse charge mechanism
"Any Business Entity" mention Notification 13/2017 CT (R) is further clarified in Notification 12/2017CT(r)


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