12 Replies
VIKAS SAINI
(1163 Points)
Replied 11 August 2019
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 12 August 2019
"good clarification and information"
sandeep
(Accountant)
(111 Points)
Replied 12 August 2019
@ Pankaj Sir,
As being a regular taxpayer one need to discharge the RCM liability on Advocate Services and Security Personal and take credit of the same in GSTR-3B My question is whether one should pay RCM on Advocate Services and Security Personnel in Agricultural company and booked same as expenses in Profit & Loss or no need to pay the RCM considering the Agriculture sector is exempted from GST . Awaiting for your valuable suggestion.
CA Haritha Komma
(Chartered Accountant)
(1147 Points)
Replied 12 August 2019
My views are as under:
Sec 24 of CGST Act , which provides the list of cases where registration under GST is mandatory, it reads as 'Notwithstanding anything contained in sec 22(1)...' . Hence, it means that sec 24 overrides sec 22 and not sec 23 (that provides relief from registration).
Hence, it may be argued that where my TO is 100% exempted, I am not liable to get registered..
However, conservative tax payer may pay GST and expense off the same to avoid litigation from department..
sandeep
(Accountant)
(111 Points)
Replied 12 August 2019
Sir, here i would like to bring your attention on that the agricultural company is registered and we will not claim any ITC on inward supply , we treat it as an expenses. But what about RCM .
My another question is , it is mandatory to reporting ITC on inward supply on goods and services in the GSTR-3B even though we are exempt ( Agricultural Company) from GST . We do not take credit of ITC as well.
On the basis of your views , you mean to say that it is better to pay RCM on advocate fees and booked it as an expenses. right sir?
Please do reply.
Anshul Jain
(Professional)
(190 Points)
Replied 12 August 2019
I agree with the suggestion given by Harshita. To add further, as the Company is registered, irrespective of nature of outward supply, the Company is liable to pay GST under RCM on receipt of services from an Advocate or Security personnel.
subhagan sreerangam
(7057 Points)
Replied 12 August 2019
shailendra shukla
(Bhopal)
(1741 Points)
Replied 12 August 2019
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 12 August 2019
As per Notification 13/2017 CT (R) (Advocate) & Notification 29/2018 CT (r) (Security Services)
Above both the Notification states that If the Recepient is Registered is required to do RCM & deposit the same .
So you are liable to RCM (As registered Recepient)
Yes you have report the same in GSTR 3B
Liability to be reported in Table 3.1, Row(C) .
Input to be reported in table 4(A)(3).
Reversal of Input to be reported in Table 4(B)(1) .
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