rajesh accountant, Goods and Services Tax - GST

[rajesh subramanian]

dear sir,

we are paying ₹ 5000 /per month from apr-18 as legal consultancy fee to an individual. whether i have to pay GST under RCM also let me know the paid amt is eligible for taking credit and refund.

Rajesh.S

ETAPL cbe

Posts / Replies

[KASTURI SETHI]

What is the constitution of your firm ?

[rajesh subramanian]

Respected sir,

We are PVT LTD company

[KASTURI SETHI]

Covered under RCM. You are required to pay GST.

[Alkesh Jani]

Sir,

If the legal consultancy is provided by an "Advocate", RCM is applicable.

Thanks

[KASTURI SETHI]

Yes. Sh.Alkesh Jani Ji is right. Here is relevant extract of C.B.E. & C. Circular No. 27/01/2018-GST, dated 4-1-2018

7.

Whether legal services other than representational services provided by an individual advocate or a senior advocate to a business entity are liable for GST under reverse charge mechanism?

Yes. In case of legal services including representational services provided by an advocate including a senior advocate to a business entity, GST is required to be paid by the recipient of the service under reverse charge mechanism, i.e. the business entity.

[Ganeshan Kalyani]

Legal consultancy is covered under reverse charge only the said service is provided by an advocate, senior advocate or firm of advocate etc.