Yes, RCM is applicable on advocate fees. … Yes you are liable to pay GST on RCM on monthly fees paid to advocate. Legal services means advice or consultancy in any branch of law. Yes you can shown in income tax return.
Is reverse charge applicable on advocate services?
As per Notification No. 13/2017 – Central Tax (Rate) dated 28th June, 2017, RCM is applicable on legal services provided to Business Entity. In case services are provided outside India, then RCM is not applicable as the Business Entity is located outside taxable territory.
What is rate of RCM on advocate fees?
Legal Services from advocate are exigible to GST rate of 18%. Thus in case of intra-State supply, CGST @ 9% and SGST @ 9% will be applicable. On the other hand IGST @ 18% will be applicable on inter-State supplies.
Is GST applicable on advocate fees?
GST is chargeable when a lawyer or law firm provides any kind of legal service to a business entity having an aggregate turnover of Rs. 20 Lakhs or more in the previous financial year. GST on legal services is also chargeable when a senior advocate provides legal service to another advocate or firm of advocates.
Is service tax applicable on advocates?
Lawyers were exempted from paying service tax and enjoy the same status under GST regime. … As per law, advocates are exempt from paying service tax for services rendered to individuals.
On which services reverse charge is applicable?
SERVICES UNDER REVERSE CHARGE AS APPROVED BY GST COUNCIL
|Sl. No.||Provider of service||Percentage of service tax payable by service provider|
|1||Any person who is located in a nontaxable territory||Nil|
|2||Goods Transport Agency (GTA)||Nil|
|3||An individual advocate or firm of advocates||Nil|
|4||An arbitral tribunal||Nil|
Do advocates pay income tax?
Income from Practice
Many of the lawyers opt to practice law. … Under the scheme, professionals can file their return declaring 50% of their gross receipts as income (if the professional income is upto Rs. 50 lakhs), and after deducting section 80 deductions, professionals need to pay tax on balance total income.
What is RCM in GST?
Reverse Charge Mechanism under GST is a mechanism under which the usual cycle of tax payment is reversed.
Which service is under RCM in GST?
List of services under RCM in GST
|Nature of supply of services||Supplier of services|
|Services supplied by a person located in non-taxable territory by way of transportation of goods by vessel from a place outside India up to the customs station of clearance in India||A person located in the non-taxable territory|
Is RCM applicable on Labour charges?
Labour contractor registered under GST: If the supplier agency is registered under GST, the agency should charge GST for labour supply. … The Labour contractor is not registered under GST: If the supplying agency is not registered under GST, the service receiver should charge GST under the reverse charge mechanism.
What is rate of reverse charge in GST?
GST Compensation Cess is also applicable on reverse charge. If the goods/services purchased in exempted or nil rated then no tax is payable under RCM. Composition dealers are required to pay reverse charge at normal rates (5%,12%,18%,28%) and not at the composition rates (1% or 5%).
Which services are exempted GST?
Exempt services include cultivation, harvesting, supply of farm labor, fumigation, packaging, renting or leasing of machinery for agricultural purposes, warehouse activities, and services by an Agricultural Produce Marketing Committee or Board that is provided by an agent for the sale or purchase of agricultural …
What is the salary of income tax lawyer in India?
The highest salary for a Tax Advocate in India is ₹86,426 per month. The lowest salary for a Tax Advocate in India is ₹18,054 per month.
What is negative list under service tax?
Negative List of Service Tax: Under Section 66D of the Finance Act 1994, a negative list of services have been outlined, which are deemed to be exempt from service tax. Any service provided that does not come under the purview of this list is liable to be levied with service tax.