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Regarding security Rcm

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Venu Gowda

76 Points Posted on 13 August 2021

SIR am giving security services to 2 parties, one is agreed to pay GST under RCM, Another one is not agreed to pay GST Under RCM,
wt to do sir???
shall I claim do one RCM and Another one FCM

Replies (2)

Quick Summary

This discussion addresses a query regarding the applicability of Reverse Charge Mechanism (RCM) for security services. The core issue is that one client agrees to GST under RCM, while another does not. The advice given highlights that the recipient's business constitution is crucial. If the recipient is a sole proprietor or firm (not a body corporate), they are liable for GST under RCM. However, if the recipient is a body corporate, they must pay GST under Forward Charge Mechanism (FCM). It's essential to consult relevant notifications for specific RCM applicability.

VIKAS ESNAPURAM

CA-JOB

163 Points Posted on 13 August 2021

Your business constitution is important if you are other than body corporate( sole proprietor or firm) you should not pay GST the liability will be of the recipient of service, but if you are incorporated as body corporate you should pay GST under FCM only.

prasad Nilugal

GST Practitioner & Accounts

9000 Points Posted on 13 August 2021

If RCM applicable as per notification , then he has to pay under RCM , So constitution of Business to whom your are providing services is important .so refer Notification .