Hi Sir
A Company is receiving below mentioned services from an unregistered supplier
Please advise whether RCM is applicable and the applicable rates
- Independent director services
- Security services
- GTA Services
- Rent service
- Legal services
Thanks
Menu
RCM on Specified Services received by Company
Replies (4)
Quick Summary
Independent Director Services
RCM Applicability: Yes
Applicable Rate: 18%
Security Services
RCM Applicability: Yes
Applicable Rate: 18%
GTA Services
RCM Applicability: Yes, if the recipient is a registered person.
Applicable Rate: 5% (with no ITC), if the GTA provides services to a registered person.
Renting of Motor Vehicle Services
RCM Applicability: Yes
Applicable Rate:
18% if the supplier is not a body corporate and the vehicle is not a luxury vehicle.
5% (with no ITC) for transport of goods by a GTA.
Legal Services
RCM Applicability: Yes, if the recipient is a business entity.
Applicable Rate: 18%
Thank you Dhirajlal Rambhia ji,
Reply is very clear, I too had similar query, one point I am confused about, please guide:
Director Salary, does it fall under Independent director service, does it attracr RCM?
The remuneration paid to Directors is issued only on receiving approval from shareholders and the Board of Directors. A director can be executive, non-executive, Managing Director, Independent Director, Small Shareholder Director, Women Director, Additional Director, or Alternate Director depending upon their responsibility towards the company.
CBIC has clarified the applicability of GST on director’s remuneration vide CGST circular no. 140/2020 dated 10th June 2020. In the circular, the criteria to classify a director as employee or not is clearly outlined. If the services are not classifiable as employer-employee relationship, then GST is levied on such remuneration. In that case, company (service recipient) will be liable to deposit the GST dues on reverse charge basis with the government as per Notification No. 13/2017.
RCM applies to all five specified services received from unregistered suppliers (subject to registration and entity criteria for GTA and legal services), and director remuneration attracts RCM only when services are rendered outside of a direct employer-employee relationship.
Recent Topics :
- Deduction In Employee Provident Fund
- This is a gift for all Chartered Accountants and P
- NRI, ITR-2 FY 2025-26: AIS Part B2 (SFT) shows hig
- Wallet query for GST.
- 25-26 exempted sales
- Hotel stay below Rs.1000/- GST applicable or exemp
- NRI, ITR-2 FY 2025-26: AIS Part B2 (SFT) shows hig
- Generate E-Way Bill for 4 Nos. Suppliers Involveme
- Section 54F Exemption
- Would you use a free, open-source alternative to s
Related Topics :
CAclubindia
