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Query Details

Asked by namish on :Jul. 17, 2018

My firm pays fees to an outside accountant for hi…

My firm pays fees to an outside accountant for his services, but he is not registered under GST. Wi…

My firm pays fees to an outside accountant for his services, but he is not registered under GST. Will reverse charge be applicable if a firm pay fees to a accountant who is not registered under gst?

0

Chiranjibi Jul. 17, 2018

You will first have to see if there is any employer employee relationship between your firm and the accountant.

In case of accounting services, if there is an employee employer relationship, the payment becomes salary, and there is no GST on that amount of salary.

But if it is not there, then GST shall be leviable when firm pays fees to accountant.

And if the accountant is unregistered under GST, then reverse charge will be applicable as per section 9(4) of the CGST Act as the firm is receiving the services from an unregistered person.

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