Is there any artcile which can help us as to which taxes to be paid in RCM in following situtations:
1. I take trasnporterservices from Maharashtra and I am registered in MP. Which tax to be paid under RCM CGST SGST or IGST.
2. I pay commission to USA entity which tax to pay under RCM: IGST or CGST & SGST.
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Sh.Dilip Sanghvi Ji,
Query-wise reply is as under :-
1. Under RCM Service receiver is deemed service provider.Hence CGST & SGST Applicable.
2. It is intermediary service.Place of supply is location of supplier of service under Section 13(8)(b) of IGST Act. (Pl.elaborate your query after going through the following decision of AAR)
2020 (3) TMI 894 - AUTHORITY FOR ADVANCE RULING, KARNATAKA - IN RE : FOM ALUMINIUM MACHINES PVT. LTD.
Under RCM provisions the service recipient is the person liable to pay tax. Supplier will still be the supplier only.
1. In this case it will be IGST since PoS is MP and location of supplier is MH.
2. If you are paying commission to a USA entity then it will not be an import of service as for intermediary service PoS will be USA i.e. location of supplier. So this is not an inter State supply