Goods and Services Tax – GST – By: – Monarch Bhatt – Dated:- 10-5-2018 Last Replied Date:- 14-5-2018 – In this article, author has tried to cover the issues which are generally faced by the assessee. The issues are chosen based on the queries raised in the various seminars delivered by the author. Query: The Company has received legal consultancy services from an advocate in the month of September, 2017 and received an invoice dated 20th September, 2017. The company has made payment to an advocate on 20th March, 2018. The turnover of the company exceeds 20 lakh. The company wants to know: Whether they are liable for the payment of GST as receiver of service? What shall be considered as a point of taxation? How it is to be discharged and shown in the return? Reply: As per section 9(3) receiver of service is liable for the payment of GST, if such supplies are specified by way of an issue of notification. In this regards, notification number 13/2017-Central Tax (Rate) has been issued to
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As per the GST provisions, under reverse charge mechanism tax is payable when the time of supply takes place. The time of supply for reverse charge payments is earliest of the following: The date of payment to the supplier (advance or payment against bill) OR 61st day from the date of invoice, if invoice is unpaid till such time OR If the transaction is for import of services, with associated enterprise, the date of debit in the books of account. In view of the provisions in the present case, the time of supply becomes the 61st day from the invoice date. i.e. 20th November, 2017 as it has not been paid prior to that and invoice is dated 20th September, 2017. c. Now the company has not discharged the GST liability in the month of September, 2017 while filing GSTR 3B. Hence, company shall pay interest on it @ 18% from 21/10/2017 (due date for filing of GSTR 3B) to till the date of filing of GSTR 3B for the month of March 2018. The same shall be shown as liability under reverse charge me
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filing GSTR 3B for the month of March 2018 and interest shall also be mentioned in the GSTR 3B. – Reply By JAIPRAKASH RUIA – The Reply = Sir, We are honored to get the guidance from you, my humble request to please be more active on taxmanagementindia.com website so that learner people like me may get benefit of you knowledge.God Bless you sir, – Reply By Archna Gupta – The Reply = Dear Mr. BhattI have query on advocate services by senior advocate because there is distinction between advocate and senior advocate in notification number 12/2017-Central Tax (Rate). If a senior advocate provides services to another advocate or another senior advocate then what would be the consequences. Whether advocate or senior advocate receiving services from SENIOR ADVOCATE are liable to get registration? – Reply By Monarch Bhatt – The Reply = The query is with respect to the applicability of reverse charge mechanism on the advocate or firm of advocate where they are receiving the services from senior
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y an individual advocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly. Explanation. – legal service means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority. . An individual advocate including a senior advocate or firm of advocates. Any business entity located in the taxable territory. The term business entity located in the taxable territory as referred in the column number (4) which is for recipient of service has been explained under the notification itself, under explanation (c). The explanation (c) of the notification reads as follows: (c) the business entity located in the taxable territory who is litigant, applicant or petitioner, as the case may be, shall be treated as the person who receives the legal services for the purpose of this notification. In view of the above, receiver of service
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