Guddi (employee) (774 Points)
01 August 2017A company is paying professional fees(40000-tds @ 10%) = 36000 p.m*12 = 4,32,000 p.a. to few employees who are not registered under gst. Is the company liable to pay GST under Reverse charge? I think the company is liable to pay RCM and can claim ITC of the same. And GST is payable @ 18% on 40000 = 7,200. Am i correct? Please answer.. Thanks in advance.
Shashikant Varshney
(Chartered Accountant)
(763 Points)
Replied 01 August 2017
No Professional services are not covered under Reverse Charge under GST.
Gopal Kumar Gupta
(Accounts & Tax Consultant)
(206 Points)
Replied 01 August 2017
Shashikant Varshney
(Chartered Accountant)
(763 Points)
Replied 01 August 2017
Dear Gopal,
Professional Fees are not covered under Reverse Charge.
Gopal Kumar Gupta
(Accounts & Tax Consultant)
(206 Points)
Replied 01 August 2017
Shashikant Varshney
(Chartered Accountant)
(763 Points)
Replied 01 August 2017
Sorry Gopal,
As per Section 9(4), they need to give the GST under Reverse Charge.
SANTOSH MANCHALA
(CA)
(78 Points)
Replied 01 August 2017
Gopal Kumar Gupta
(Accounts & Tax Consultant)
(206 Points)
Replied 01 August 2017
Arun Kumar Singh
(GST Advocate)
(15220 Points)
Replied 01 August 2017
If professional is unregistered then you need to pay GST under reverse charge mechanism and take the credit after payment.
tejaswinee
(Student)
(64 Points)
Replied 17 November 2017
Thankyou so much even I was wondering about this question since a long time.
Whether to pay GST on RCM basis on professional fees or not. Now that I have came to know this that I need to pay GST on RCM basis. Since July we have not paid GST on Professional fees on RCM basis.
What can be done on this as out GSTR3B, GSTR1 has already been filed per month till October 2017.
Please help me on this.
Ashutosh Kumar Pandey
(Others)
(33 Points)
Replied 29 November 2017
Sir Professional fees is Taxable under RCM in GSt
Ashutosh Kumar Pandey
(Others)
(33 Points)
Replied 29 November 2017
GST rate for tax consultancy and preparation services is 18%
SAC Code 998231 – Corporate tax consulting and preparation services
SAC Code 998232 – Individual tax preparation and planning services
18% GST rate is applicable for SAC Code 998399 – Other professional, technical and business services, technical and business services.
Ashutosh Kumar Pandey
(Others)
(33 Points)
Replied 29 November 2017
Tejaswinee Ji
If u have filed your 3B and GSTR-1 without paying RCM libilities of that month and you recd the bill or made the payment in that month ,then you have to pay interest on rcm libilities
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