Hi sir
Suppose a registered person receives Security services from a Company
The Company is unregistered under GST
Will the RCM provisions applicable on this transaction
Please advise
Thanks
Menu
Security services RCM Body Corporate
Replies (2)
As per Section 9(4) of the CGST Act, 2017, and Notification No. 13/2017 - Central Tax (Rate), the recipient (registered person) is liable to pay GST under RCM on the security services received from the unregistered supplier. RCM provisions are applicable on this transaction.
Yes, the Reverse Charge Mechanism (RCM) provisions would be applicable in this case.
As per GST regulations, if a registered person receives services from an unregistered supplier, the recipient is required to pay GST under RCM. In this scenario: -
The recipient (registered person) is required to pay GST on the security services received from the unregistered supplier (Company). -
The recipient should report this transaction in their GST returns and pay GST on the value of services received.
However, please note that there are some exceptions and additional considerations: -
If the security services are received from an unregistered supplier whose aggregate turnover is less than ₹20 lakhs (₹10 lakhs in special category states), RCM may not apply. -
If the services are received from an unregistered supplier located outside India, the recipient may need to comply with other GST provisions, such as the "reverse charge" mechanism.
Recent Topic
- Set off of LTCL against STCG under section 536(2n)
- Audit Workflow tool
- Is CA through direct entry easy for a commerce stu
- Dividend and withholding tax - DTAA- RSU
- NRI Query: Capital Gains Tax Exemption under Secti
- Royalty payment to UK
- Calculate ITR2 tax with equity and non equity prof
- LTCG on residential property sale - Rebate?
- TDS MISMATCH AND AIS
- Return filing for intervening period upto date of
Related Topics
CAclubindia
