rajesh accountant

[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

AI Summary

Reverse Charge Mechanism Applies to Legal Consultancy Fees Paid by Companies to Advocates Under GST Circular. An individual inquired about the applicability of Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) for a monthly legal consultancy fee of 5000 paid to an individual. A respondent asked for the firm's constitution, and upon learning it was a private limited company, confirmed RCM applicability. Another contributor clarified that RCM applies if the consultancy is provided by an advocate. A circular was cited, affirming that legal services, including representational services by advocates, require GST payment by the recipient under RCM. The discussion emphasized that RCM applies if services are provided by an advocate or firm of advocates.