In exemptions it is given that legal services by arbitral tribunal /part firm /senior advocates /firm of advocates to a business entity less than t/o 20l /10l is not liable to tax.
But in s.9(3) list, services of these people to business entity are charge d on reverse charge.
If they are exempted why are they under reverse charg. Or In reverse charge list instead of writing business entity in taxable territory, they should clearly write upto turnover 20lakhs or 10 lakhs.
5 Replies
Hemal Makwana
(Designation)
(771 Points)
Replied 13 June 2020
Section 9(3) has to be read with reverse charge notification and exemption notification simultaneously. reading in isolation would not help you to arrive at conclusion. legal services provided to business entity is taxable under RCM, however if turnover of business entity is less than specified limit, business entity is not liable to pay GST under RCM. Hope it clarifies
KRISSHNAN KP
(4215 Points)
Replied 14 June 2020
The registered dealer must be crossing minimum turnover under GST Act is only liable to pay taxes
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 15 June 2020
It's means the business entity whose Aggregate turnover is below the threshold limit as prescribed in Section 22 is not required to obtain Registration. But as per Section 24 the person who is Availing Services which are under RCM is mandatory require Registration (Cannot enjoy Threshold limit)
So in this case if above mentioned services availed by business entity whose Aggregate turnover is below threshold limit the said Services is Exempted. (Notification 12/2017 CT (R) & not required to obtain compulsory Registration as per Section 24
So in this case if above mentioned services availed by business entity whose Aggregate turnover is below threshold limit the said Services is Exempted. (Notification 12/2017 CT (R) & not required to obtain compulsory Registration as per Section 24
Harshit Acharya
(404 Points)
Replied 25 June 2020
Even if it's threshold is below the limit.Why are they not liable for compulsory registration under s.24 as they are receiving RCM servcies
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 25 June 2020
because as per notification 12/2017 ct (r) the service is exempted in case provided to class of person prescribed therein. so when the recipient is exempted to do rcm , the provision of section 24 of cgst act not applicable to him
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