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Rcm for legal fee

bijo (Accountant) (302 Points)

23 February 2018

IS RCM applicable for hospitals,when they paid Legal fee? If so, how much is the rate of tax?

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4 Replies

sujith kumar dasa (banglore) (1496 Points)
Replied 23 February 2018

yes applicable @ 18%

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Shivam RC (Student) (23683 Points)
Replied 23 February 2018

Till 31st March 2018, the Provision of Section 9(4) i.e RCM is suspended.

sujith kumar dasa (banglore) (1496 Points)
Replied 23 February 2018

but RCM u/s 9(3) of CGST Act is not suspended and Legal services falls under 9(3) hence RCM is applicable

Sumit Sarswat (Student) (3154 Points)
Replied 24 February 2018

RCM is applicable if legal services are provided by advocate to any business entity having turnover more than 20 Lakh (10 lakhs fm specified state).
if in this case turnover of hospital exceed 20 or 10 Lakhs than RCM is applicable and hospital is liable to pay GST.

sec 9(4) doesn't attracts in this case.