Reverse Charge Mechanism

[CARajnikant Kalsariya]

Professional Fees Cover Under Reverse Charge Mechanism?

[SOWMYA CA]

Yes Services of Advocate, Services of a director to the company other than as an employee, are under Reverse Charge mechanism. you can refer Notification no. 13/2017 CTR CGST 2017

[KASTURI SETHI]

Sh. Rajnikant Kalsariya CA,

The word, 'professional' has been defined in legal dictionary as, 'a person who does a job that requires specialized knowledge, skill or education in a particular subject/field. The following services are covered in the category of 'Professional Services' and these are as under :-

1.Consulting Engineering Service

2.Architect Service

3.Interior Decorator Service,

4.Management or Business Consultant Service,

5.Chartered Accountant Service,

6.Company Secretary Service

7. Cost Accountant Service (Now CMA)

8.Scientific or Technical Consultancy Service

9.Photography Service

10. Fashion Designing Service

11. Opinion Poll Agency Service

12 Design Service

13. Advocate Services (Legal Services)

14. Medical Doctor's services.

RCM is not applicable to above professional services (except Legal Services provided by Advocate under Notification No.13/17-CR(Rate) dated 28.6.17 as amended up to 31.12.19).

[Shilpi Jain]

Instead of looking at the status of service provider please share details of the service provided. Advocate services liable under rcm

AI Summary

Reverse Charge Mechanism: Advocate services attract reverse charge while most professional services remain outside reverse charge liability.
Whether professional fees attract the Reverse Charge Mechanism depends on the service's nature and applicable notifications: Advocate services and directors' services to companies (non-employee) are within reverse charge scope, whereas the broader set of listed professional services are generally not subject to reverse charge merely by virtue of the provider's professional status.