Is RCM applicable on exempted services?
Is RCM applicable on exempted services?
If supply is exempted, nil rated or non-taxable, RCM does not apply in such a case. Recipient of goods or services discharges GST under RCM as if he is the person liable for paying the tax on supply procured by him. The tax liability needs to be discharged under RCM at applicable rate of tax.
What is the limit for RCM under GST?
Rs. 20 lakh
Registration: A person who is required to pay tax under reverse charge has to compulsorily register under GST and the threshold limit of Rs. 20 lakh (Rs. 10 lakh for special category states except J & K) is not applicable to them.
Is RCM applicable on professional services?
Reply:- No, RCM is not applicable on Engineering Consultancy services. The applicable GST rate is 18%.
What is reverse charge in service tax?
Reverse Charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply.
Is RCM suspended?
“Section 9 (4), which mandates that all registered persons shall pay the tax on reverse charge basis on purchases made from unregistered persons, is presently under suspension. This sub-section is being omitted for trade facilitation.
On which expenses reverse charge is applicable?
What are the Profit & Loss items which might attract GST under RCM
- Rent.
- Commission payments.
- Printing and stationery.
- Repairs and Maintenance.
- Office Maintenance.
- Vehicle maintenance.
- Computer maintenance.
- Legal Fees.
Can unregistered dealer issue invoice?
The GST law mandates that any registered person buying goods or services from an unregistered person needs to issue a payment voucher as well as a tax invoice. An invoice or a bill of supply need not be issued if the value of the supply is less than Rs.
Is RCM under GST suspended?
On which services is RCM applicable?
List of services under RCM in GST
| Nature of supply of services | Supplier of services |
|---|---|
| Services supplied by a person located in non-taxable territory by way of transportation of goods by vessel from a place outside India up to the customs station of clearance in India | A person located in the non-taxable territory |
On which expenses RCM is applicable?
Who is responsible for service tax under RCM?
6. Support Service by Government or Local Authority‐ In relation to service provided or to be provided by Government or local authority to any business entity located in the taxable territory, the recipient of such service. The recipient in such case will be liable to pay 100% service tax.
Who is liable to pay RCM on freight?
If the liability of freight payment lies with the receiver (Consignee), then the receiver of goods will be treated as a receiver of transportation services. If he belongs to any of the above category of persons, then he will pay GST on reverse charge basis.