TaxTMI 
TaxTMI 
RCM on Legal services
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....CM on Legal services<br> Query (Issue) Started By: - Mratunjaya Vajramatti Dated:- 9-12-2023 Last Reply Date:- 16-12-2023 Goods and Services Tax - GST<br>Got 9 Replies<br>GST<br>We have a Trust registered under GST and Received legal Sponsorship Services are we liable to pay tax under RCM ?? Reply By Amit Agrawal: The Reply: With the understanding that said trust has taken registration under GST....
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.... on its outward supply u/s 7 (1) of the CGST Act, 2017 (& thereby it being as 'Business Entity') and it got an aggregate turnover of such amount in the preceding financial year as makes it non-eligible for exemption from registration under the Central Goods and Services Tax Act, 2017 (12 of 2017), such trust is liable to pay GST under RCM against 'Services received from an individual a....
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....dvocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly'. It is worth noting that 'profit motive' is not a pre-requisite criteria to fall under the definition of 'business' u/s 2(17) of the CGST Act, 2017. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By Amit ....
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....Agrawal: The Reply: W.r.t. sponsorship services (i.e. Services provided by way of sponsorship to any body corporate or partnership firm), GST is payable under RCM only when service-receiver is 'Any body corporate or partnership firm located in the taxable territory.'. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By Ami....
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....t Agrawal: The Reply: As subject line of your query is 'RCM on Legal services' wherein text of the query used the word 'legal Sponsorship Services' (& I am unable to understand meaning of 'legal Sponsorship Services'), I tries to answer your query w.r.t. liability to pay GST under RCM against receipt of 'Legal services' and 'Sponsorship Services' separately....
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..... These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By KASTURI SETHI: The Reply: Dear querist, Here Trust is a business entity. It is engaged in supply against consideration. If any Trust or charitable organization supplies against consideration, that Trust is a business entity and cannot be treated as charitable. See .C.B.I. & C. ....
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....Circular No. 66/40/2018-GST, dated 26-9-2018 Hence Tax under RCM is applicable on legal services. Regarding the applicability of GST on Sponsorship Services, pl. elaborate your query. Reply By Padmanathan Kollengode: The Reply: Ld friend Amit JI, Supposing the turnover of the trust was below 20 Lakhs in preceding FY, and the trust had taken voluntary registration in current FY, would your answ....
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....ers differ? if so, how? This is for my complete understanding as well as the understanding of readers in the said subject matter. Reply By Amit Agrawal: The Reply: @ Shri PadmanathanJi, W.r.t. your post above, kindly refer to Serial No. 45 of Exemption Notification No. 12/2017- Central Tax (Rate) (as amended till date). These are ex facie views of mine and the same should not be construed as....
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.... professional advice / suggestion. Reply By KASTURI SETHI: The Reply: Dear All Experts, The query is very very brief. It is silent about the constitution of legal firm from whom legal services were received. It appears to me that we are more enthusiastic than the querist. All of us have made all-out efforts to reply to the query but no response has been received from the querist so far. We kn....
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....ow how much hard work is involved in each reply posted here. Non-response from the querist shows his lack of interest. I agree with all the replies of Sh.Amit Agrawal, Sir. His thorough study on the issue and analysis and conclusion (despite it being very very brief query) speaks volumes of his hard work. Disclaimer : These are my personal views/outpourings are meant for education purpose onl....
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....y and not for any court proceedings. Reply By Mratunjaya Vajramatti: The Reply: Thank you Amit Agarwal sir and Kasturi Shethi sir, i understood from your reply But, what if Legal services provided by proprietor who is registered under GST and Charges GST in Invoice?? Reply By Shilpi Jain: The Reply: Are the legal services provided by an Advocate?<br> Discussion Forum - Knowledge Sharing ....