Go AD-Free with CAclubindia Pro and get a FREE CCI Coffee Mug. Subscribe Now!

RCM Liability

subhagan sreerangam (7056 Points)

15 October 2024

A Registered taxpayer Paid to Advocate fees ₹ 4500 on 26/10/2020.In this Case the taxpayer have an any liability payable through RCM?

Reply
Follow
Share

3 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (7161 Points)
Replied 16 October 2024

As per the GST regulations, Reverse Charge Mechanism (RCM) applies to certain services, including legal services provided by advocates. Since the taxpayer is a registered entity, they are required to pay GST on the advocate fees under RCM. In this case: - The taxpayer paid ₹4500 to the advocate on 26/10/2020. - The GST rate applicable would be 18% (as per the current GST rate for legal services). - The taxpayer needs to pay GST on the advocate fees under RCM. Calculation: - GST amount = ₹4500 x 18% = ₹810 - Total liability = ₹4500 (advocate fees) + ₹810 (GST) = ₹5310 So, yes, the taxpayer has a liability of ₹810 payable through RCM, which needs to be deposited along with the GST return. Additionally, the taxpayer may need to report this expense in their GST returns and claim input credit if eligible.

Upgrade to CAclubindia Pro. Subscribe Now!

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (7161 Points)
Replied 16 October 2024

As per the GST regulations, Reverse Charge Mechanism (RCM) applies to certain services, including legal services provided by advocates. Since the taxpayer is a registered entity, they are required to pay GST on the advocate fees under RCM. In this case: - The taxpayer paid ₹4500 to the advocate on 26/10/2020. - The GST rate applicable would be 18% (as per the current GST rate for legal services). - The taxpayer needs to pay GST on the advocate fees under RCM. Calculation: - GST amount = ₹4500 x 18% = ₹810 - Total liability = ₹4500 (advocate fees) + ₹810 (GST) = ₹5310 So, yes, the taxpayer has a liability of ₹810 payable through RCM, which needs to be deposited along with the GST return. Additionally, the taxpayer may need to report this expense in their GST returns and claim input credit if eligible.

subhagan sreerangam (7056 Points)
Replied 16 October 2024

I pay to Advocate ₹4500 only

Join CCI Pro

Recent Topics

More recent discussions | Post

Related Threads

Popular Discussion

Start a New Discussion

CCI Pro

Trending Online Classes

Course on Input Service Distributor (ISD)

Industry Expert

Enroll Now

12 April 2025
Certification Course on GST Notices Reply from AI Tools

CA Deepak Gupta

Enroll Now

12 April 2025
Certification Course on GSTR-3B Reconciliation with GSTR-2B through Chat GPT

CA Deepak Gupta

Enroll Now

26 April 2025

view all classess

Subscribe to the latest topics :

Search Forum:

Forum Home

Popular Threads

Recent Posts

Unreplied Threads

Settings