Reverse charge on payment made to Advocate.
This query is : Open
01 May 2020
There is company registered under GST in F.Y. 2019-2020 and providing taxable and exempt supplies both.
There is a payment made by the company to advocate/firm of advocates for case which is going in District Court.
There was no GST registration for the company in the F.Y 2018-2019 and there was no commercial activity by the company in F.Y 2018-2019.
The company started its commercial operation in F.Y. 2019-2020 and started providing taxable and exempt supply and the turnover exceeds Rs.20 Lakhs.
What will the treatment in case of payment to advocate?
Whether tax has to be paid under reverse charge?
There is a payment made by the company to advocate/firm of advocates for case which is going in District Court.
There was no GST registration for the company in the F.Y 2018-2019 and there was no commercial activity by the company in F.Y 2018-2019.
The company started its commercial operation in F.Y. 2019-2020 and started providing taxable and exempt supply and the turnover exceeds Rs.20 Lakhs.
What will the treatment in case of payment to advocate?
Whether tax has to be paid under reverse charge?
01 May 2020
As per your query you referred two FY. But, No details of payments for fees paid to advocate to which FY.
01 May 2020
When is the payment to advocates made or what is the date of their invoice?
02 May 2020
the payment is made in the year 2019-2020. till now there is no invoice is issued by the advocate. the fees is paid is about 50000/-
02 May 2020
GST Tax will payable as rcm for the service received from advocate...
02 May 2020
GST RCM payable in FY 19-20. Nothing to do with FY 28-19
02 May 2020
Whether whole GST is paid on reverse charge basis or should be proportionately reversed as company is providing taxable and exempt supplies?
02 May 2020
GST on RCM will be paid in full. ITC for the same shall be claimed proportionately (if common ITC)
02 May 2020
Rcm paid related ITC also can be taken fully. No need to proportionately...
02 May 2020
He will have to reverse the portion if it is common credits as he is providing both exempt and taxable supplies. Will have to do as per section 17 read with rule 42
02 May 2020
The query is rcm related. Not for normal ITC. If normal ITC then it will considering with taxable Supplies and Exempt supplies. For rcm payable on full value if the supplies and ITC also will be taken full value of rcm paid... Better with rcm activities with the said rule with section.
02 May 2020
The definition of ITC includes ITC from RCM. Ans the section and rules consider ITC as a whole
02 May 2020
Rcm payable on full value of supply and ITC can be claim full value of tax which is paid under "RCM" basis.
02 May 2020
ITC cannot be claimed in full. Will have to reverse the portion for exempt outward supplies under Rule 42. If you have reasons for your opinion please quote the law.
03 May 2020
Gst is payable under rcm on full value as has been paid to advocate. Itc also allow to claim in full but it reversal as per rule 42 of chat rules has to be done because company is in the business of taxable and exempted supplies and section 17 (2) treatment has to be Applied and manner of attributation as per rule 42 of chat rules.
03 May 2020
Typing error, chat should read as cgst
08 May 2020
I agree with CA Altamush Zafar.
RCM ITC will have to reversed based on Taxable and Non-Taxable basis.
RCM ITC will have to reversed based on Taxable and Non-Taxable basis.
10 May 2020
What if full credit is taken? Will I face any problem from GST department?
10 May 2020
Will the answer be same if renumeration is paid to directors as professional fees?
Whether whole ITC available to company providing taxable and exempt services?
or will it be available on proportionate basis?
Whether whole ITC available to company providing taxable and exempt services?
or will it be available on proportionate basis?
23 May 2020
As your company was not registered in FY 2018-19 RCM on advocate fees does not arise as recipeint should be a registered entity. as for FY 2019-20 you have to pay reverse charge on advocate fees. ITC is available for full RCM there is no requirement of proportionately reducing in terms of taxable and exempt supplies. Advocate services are used for court cases and not for in relation to any supply of goods. proportionate ITC rule will apply in case of normal ITC and that too only when ITC pertains to goods and services used as input. In your case advocate services are nothing to do with goods supplied by your company so RCM credit is available in full.
25 May 2020
What about sec 17(2) and rule 42 ?
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