Question ID :
36886
Reverse Charge Mechanism
If Business entity is unregistered ( since turnover is less than Rs 20 lakhs and availing services of advocates, then will it be liable to take registration and pay tax for this single transaction ?
Posted by
samirkumar gokulbhai kasvala
on
Dec 10, 2018
Filed Under
GST
Yes, 20 lacs relief is under section 22. But notwithstanding 22, section 24 requires compulsory registration if RCM is attracted (when 'business entity' makes payment).
And once registered (for RCM purposes), forward charge also attracts even if turnover still below 20 lacs.
Posted by
CA. JATIN CHRISTOPHER A on
Dec 11, 2018