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Residential place

19 August 2022

We have taken rented one guest house.Rent bill dated 01/07/22 and accounted on 02/07/22 , payment made on 20/07/22
RCM on dewelling premises is
applicable from 18/07/22
But here bill is received for july on 01/07/22
As per provision of service rule, is RCM applicable or not though bill & accounting is before 1807/22

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6 Replies

Rajkumar Gutti (538 Points)
Replied 19 August 2022

My question is ,we have recceived bill for rental guest house bill date before 18/07/22 ,and rcm gst is applicable w.e.f.18/07/22 .Is rcm is liable to pay. what is the point of taxation

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CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13597 Points)
Replied 19 August 2022

Originally posted by : Rajkumar Gutti

My question is ,we have recceived bill for rental guest house bill date before 18/07/22 ,and rcm gst is applicable w.e.f.18/07/22 .Is rcm is liable to pay. what is the point of taxation

In this case time of supply under section 13(3) will apply.

Rajkumar Gutti (538 Points)
Replied 19 August 2022

Date of bill & date of accounting is before 18/07/22 payment is made on 19/07/22.
As per notification 5/2017 RCM is applicable w.e.f. 18/07/22
So is Rcm liable for above particulars

CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13597 Points)
Replied 20 August 2022

Time of supply is relevant for the purpose of determining the liability to pay tax. in case of reverse charge services according to section 13(3) time of supply will be 19.07.2022 being earlier of

date on which payment is made

date immediately following 60 days from the date of issuance of invoice

So accordingly liability to pay RCM arises after 18.07.2022 i.e when RCM notification was made effective so RCM is payable