Is RCM payable on government services like subletting fees/charges paid to MIDC for leasing industrial plot, factory license renewal fees etc. And if yes, can credit for RCM paid in Jan 19 for expense of FY 17-18 can be taken in Jan 19 or it will not be allowed?
Reply
RCM is applicable when Service supplied by the central government, state government, union territory or local authority by way of renting of immovable property to a person registered under the CGST.
Therefore, services stated in the query will attract RCM provision. You can avail the ITC of RCM in the same month after making the Cash payment of Tax Under RCM.
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