IS RCM PAYABLE ON LEGAL OR PROFESSIONAL FEES PAID TO AN ADVOCATE UNREGISTERED IN GST AND WHAT WILL BE RATE AND UNDER WHICH NOTIFICATION????

Reply—As per Sl. No. 2 of Notification No. 13/2017-CTR read with Corrigendum to Notification No. 13/2017-CTR dated 25.09.2017, for legal services supplied by an individual advocate, a senior advocate or firm of advocates to a business entity located in taxable territory, the tax under reverse charge shall be paid by the recipient of services i.e., the business entity.

Further, on a combined reading of entries under entry no.45(b)(ii) and 45(c) (iii) of Notification No. 12/2017-CTR as amended, it can be understood that the legal services supplied by an individual advocate, a senior advocate or firm of advocates to a business entity with aggregate turnover in the preceding financial year up to which the exemption from registration is available, are exempt from GST.

Legal services are taxable @18% under SAC 9982.