Reverse charge
syed Nayebe rasool (Article assistant) (41 Points)
31 August 2018
whether reverse charge is applicable on interstate supply of services?
3 Replies
Sarath Chandra
(CA Final Student)
(566 Points)
Replied 31 August 2018
It depends on the type of service supplied.
syed Nayebe rasool
(Article assistant)
(41 Points)
Replied 31 August 2018
let's assume it's a a kind of technical service. whether RCM will still apply?
Sarath Chandra
(CA Final Student)
(566 Points)
Replied 31 August 2018
No. RCM is not applicable.
As per notification no. 13/2017 dated 28.06.2017, the govt. has notified the following services taxable under RCM:
Supply of services by:
1. a GTA
2. an individual advocate including a senior advocate or firm of advocates
3. an arbitral tribunal
4. any person by way of sponsorship to any body corporate or partnership firm
5. CG/SG/UT/LA (subject to few exceptions)
6. a director of a company to the said company
7. an insurance agent
8. a recovery agent to a baking company or a financial institution or NBFC
9. an author, music composer, photographer, artist or the like to a publisher, music company, producer or the like.
Since supply of technical services is not provided in the above notification, it is taxable under forward charge.
As per notification no. 13/2017 dated 28.06.2017, the govt. has notified the following services taxable under RCM:
Supply of services by:
1. a GTA
2. an individual advocate including a senior advocate or firm of advocates
3. an arbitral tribunal
4. any person by way of sponsorship to any body corporate or partnership firm
5. CG/SG/UT/LA (subject to few exceptions)
6. a director of a company to the said company
7. an insurance agent
8. a recovery agent to a baking company or a financial institution or NBFC
9. an author, music composer, photographer, artist or the like to a publisher, music company, producer or the like.
Since supply of technical services is not provided in the above notification, it is taxable under forward charge.
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