Is GST Charged On Professional Fees?

How do you calculate GST on bank charges?

Intra-State Bank Payment with GST on Bank Charges where Input Tax Credit is available, for example bank charge of INR 10000 to be paid to bank and GST (9% CGST and 9% SGST) has to be calculated on bank charges amount….GST on bank charges.ParticularsAmountIGST Receivable Account1800Bank Account-118001 more row•Oct 1, 2020.

What is GST rate under RCM?

GST rate on GTA Services under RCM – 12% or 5%? -any casual taxable person. … Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it.

Is GST applicable on services?

Government has also imposed GST on Services with the same 4-tier tax structure as of goods. GST rates on services comprising of 5%, 12%, 18% and 28% comes with various pros and cons for the consumers. However, government has exempted healthcare and educational services from the purview of the GST.

Is GST required below 20 lakhs?

A business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under Goods and Services Tax. This limit is set at Rs 10 lakhs for North Eastern and hilly states flagged as special category states.

What is the GST limit for service providers?

Rs 40 lakhNEW DELHI: In a “massive relief” to small businesses, the GST Council Thursday doubled the limit for exemption from payment of goods and services tax (GST) to Rs 40 lakh and announced that the higher turnover cap of Rs 1.5 crore for availing composition scheme of paying 1 per cent tax will be effective from April 1.

What are the GST rules?

GST RulesRULE 1 : Short title, commencement and application. … RULE 2 : Definitions. … RULE 3 : Methods of determination of value. … RULE 4 : Determination of value of supply by comparison. … RULE 5 : Computed value method. … RULE 6 : Residual method. … RULE 7 : Rejection of declared value. … RULE 8 : Valuation in certain cases.

What is the GST rate on professional services?

GST rate on consultancy services : Consultancy services attracts 18% of GST Rate. Consultancy can be of any nature related to healthcare, finance, investments etc….GST rate schedule for services.Nature of ServiceGST rates on servicesTraining services provided by commercial coaching entities18% Slab1 more row•Nov 21, 2019

Is GST charged on bank charges?

Banking services charge 15% service tax currently which will increase to 18% under GST. Like insurance, banking services will also become more expensive to the customers due to increase in taxes.

Which services are exempt from GST?

All the services related to agriculture including harvesting, cultivation, supply, packaging, warehouse, renting or leasing of machinery, etc. are exempted from GST. However, this does not include the rearing of horses. Transportation of individuals via public transport, metered cabs, auto-rickshaws, metro, etc.

On which services reverse charge is applicable?

SERVICES UNDER REVERSE CHARGE AS APPROVED BY GST COUNCILSl. No.Provider of servicePercentage of service tax payable by any person other than the service provider2Goods Transport Agency (GTA)100%3An individual advocate or firm of advocates100%4An arbitral tribunal100%5Any person100%8 more rows

How can I enter bank charges in Tally GST?

Record an expense in a payment voucherGo to Gateway of Tally > Accounting Vouchers > F5: Payment . … Press F12 twice and enable the options Show Party Details for GST? and Allow modification of tax details for GST? .Select the cash/bank ledger and enter the party details with State and Registration Type .Press Enter .

Is GST applicable on foreign remittance?

Goods and Services Tax: All foreign exchange transactions are subject to levy of Goods and Services Tax (GST), which is payable in addition to the charges mentioned above.

How is GST calculated?

GST calculation can be explained by simple illustration : If a goods or services is sold at Rs. 1,000 and the GST rate applicable is 18%, then the net price calculated will be = 1,000+ (1,000X(18/100)) = 1,000+180 = Rs.

Is reverse charge applicable on professional fees under GST?

No Professional services are not covered under Reverse Charge under GST.

What are the 3 types of GST?

Know about the types of GST in IndiaHighlights.CGST, SGST and IGST are the 3 types of GST in India.CGST and SGST are levied on intra-state transactions.CGST is collected by the centre and SGST by the state.IGST is charged on inter-state goods/services transactions.

On which expenses reverse charge is applicable?

Supply from an Unregistered dealer to a Registered dealer. If a vendor who is not registered under GST, supplies goods to a person who is registered under GST, then Reverse Charge would apply. This means that the GST will have to be paid directly by the receiver to the Government instead of the supplier.

Is GST compulsory for small business?

Answer: Yes, you will be required to register under GST, even if your business’ annual revenue is less than Rs 20 lakh, which is the threshold for businesses which are required to be registered under GST.