Question ID : 40695

Reverse charge on ROC fees

Whether Reverse charge is applicable on ROC fees and other fees paid to MCA

Answer ID : 80577

RCM not applicable to ROC fees being an exempted service.

Answer ID : 80578

Any registration mandatory under the law are exempted and no RCM on such charges (including ROC charges)

Answer ID : 80582

NO RCM is applicable on ROC fee paid to MCA

Answer ID : 80583

ROC fee is charged for different different purposes. For Example company registration, LLP registration, Annual filings, Increase in authorized capital. No doubt it is supply as per section 7 because it is not excluded by virtue of power granted by section 7(2)(b) of CGST Act 2017. Further it is also not exempt as per entry no 6 of notification no 12/2017. Now as far as concerned about tax payment on ROC fee, It can not be said directly whether Reverse charge is payable on ROC fee or not. It depends on the nature of service for which such fee has been paid. For example if fee is paid for registration of company or LLP then it is exempt vide entry no 47 of notification no 12/2017. Suppose if ROC fee is paid for any other purpose, then it is to be check whether fee paid by the company during the year is in excess of Rs. 5000 or not if it's upto Rs.5000 during the year, then it should not exempt under GST as per entry no 9 of the Notification No. 12/2017. Therefore we need to looked into the nature of service and consideration paid for the same. Similarly suppose ABC Pvt Ltd paid 20000 as ROC fee during the year but ATO of the company does not exceed the limit, liable to take registration, in such case Entry no 7 of notification no 12/2017 shall exempt the same. Therefore one have to analyse the position to check whether RCM is applicable on ROC fee or not. If it is not exempt any where, then as per entry no 5 of Notification no 13/2017 tax is to be paid by Business entity under RCM.

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