Rcm

This query is : Resolved

eranna (Querist)
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13 September 2017 Dear sir,

one of our director, he is given factory for rent to our company. eg. factory rent 3 lakhs. he got GST registration also.my question is this transaction under RCM?
As per specified RCM list directors service also RCM.
So our company liability to GST .
Please send RCM invoice format

thanks

RAJA P M

RAJA P M (Expert)
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13 September 2017 You can receive invoice for the Rent if he is registered under GST. Then you don't want pay tax under RCM basis... Also you can use your Sales invoice format as RCM related invoice. Note just RCM invoice... That's all...

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 September 2017 Incase director raise the invoice with GST ( Obviously he has to raise since he registered under GST) then this transaction is not covered under RCM. incase he is not giving any invoice or raising without charging service tax then GST apply on this under RCM basis

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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13 September 2017 No RCM liability arises in case of rent paid to director for factory as same is not provided under employment conditions......

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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14 September 2017 I agree with CMA Ramesh Krishnan. The only thing is that as per the law since director's services to the company is covered under specific RCM under section 9(3), only the receipient is liable to pay on reverse charge basis, the director ideally should not raise a taxable invoice. Section 9(3) is irrespective of whether the supplier is registered or not.