TaxTMI 
TaxTMI 
sir there are two terms used under RCM applicable for services and they often create little confusion. " Any business entity located in the taxable territory", "A registered person, located in the taxable territory". what do these two terms indicate! why they are interchangeably used!
RCM supply
03 Dec 2020 
2 Replies 
2232 Views Asked by
Reverse charge mechanism for services hinges on business purpose and taxable territory for recipient-based tax liability.
RCM for services applies only where the supply is made in the course or furtherance of business and is located in the taxable territory; non-B-to-B supplies (such as certain supplies to government) do not attract RCM and remain under forward charge. The phrases "any business entity located in the taxable territory" and "a registered person, located in the taxable territory" substantially overlap because a registered person is a business entity; RCM application depends on specific conditions set out in the relevant notification. (AI Summary)
RCM for services applies only where the supply is made in the course or furtherance of business and is located in the taxable territory; non-B-to-B supplies (such as certain supplies to government) do not attract RCM and remain under forward charge. The phrases "any business entity located in the taxable territory" and "a registered person, located in the taxable territory" substantially overlap because a registered person is a business entity; RCM application depends on specific conditions set out in the relevant notification. (AI Summary)