Rcm on professional fees

Quick Summary
Discussion covered GST applicability on professional fees under Reverse Charge Mechanism (RCM). Services from unregistered professionals could attract RCM under Section 9(4), subject to exemptions and timelines. Legal services by advocates fall under specific RCM provisions.

Please note that, there is two different aspects of professional fees;

1. Legal Fees - service provided by advocate or firm of advocate

2. Professional fees - service provided by any person in manner of technical expertise

So, point no 1 fall under RCM u/s 9(3) & point no 2 does not fall under RCM

My advise is that, please classified first that what service you have got? then easy to do taxation effect

Hi,

Supplies from unregistered person will attract reverse charge u/s 9(4) of CGST Act, 2017 unless such supplies are specifically exempted.

In case of the employer-employee relationship, if the professional services are provided as part of the Employement Contract, then they shall not be subject to GST altogether.

But if the professional services are out of the purview of the Employement Contract, then GST shall be applicable @ 18% and shall be paid under Reverse Charge Mechanism in case the professional is an unregistered person.

It is to be noted that applicability of Reverse Charge Mechanism (in case of supplies made by unregistered persons to registered persons) has been postponed until 30.06.2018.

 

Mr. Ashutosh,

 

Thankyou.. we have soughted this out by paying interest on this and now we are free from any liability.

How much will the RCM's liability be after 5000 ??

If both service provider and recipient are registered and if the supplier (auditor) wants the recipient  to pay gst under reverse charge..can it be done?

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