Reply from ICAI E-Sahayata

Question – While remitting my membership and COP fees online I tried to key in GST number of the Partnership  firm in which I am whole time partner in practice. However I am getting invalid GSTN  registration detail message. kindly clarify.

Answer- As per opinion received from GST Consultant read with provisions of GST Law, ICAI is giving invoice only to its member in their individual name only accepting GSTIN numbers of members in their Individual capacity i.e. proprietorship. ICAI has taken a view that Invoice for Membership fees cannot be issued to CA firm.

ICAI is also in the process of filing an application with the Advance Ruling Authority on this matter.

GST on ICAI Membership Fees

More Under CA, CS, CMA

2 Comments

  1. vswami says:

    INSTANT (Tentative personal remarks- simply intended to serve as a backdrop, in order to provoke further thoughts):

    The member’s ‘grievance’, all the more so the ICAI’s ‘closing remark’, are not readily understood.

    Even granting / conceding one’s limited knowledge, of the GST law, in theory- with no practical exposure, there being no need, following are the aspects which may have to be borne in kind :-

    A ) GSTN, in the case of a professional, such as a CA, is a requirement for compliance by ‘the person’ who is accountable for consideration received , for ‘services’ attracting the levy of tax, in his hands.

    B ) For the purposes of income-tax, briefly said, In the case of a ‘FIRM’ , within its meaning of sec 2 (23), read together with sec 10 (2A), a partner’s share in the total income of the firm, taxed in its hands, is not taxable in the hands of its partner.

    So far as one is aware , the same position holds good even for GST purposes. Premised so (open to correction, if not so), one would have thought it is the FIRM (inclusive of a LLP) who has to apply for and hold a GSTN in its name; not the partners, individually.

    C ) Regarding the ICAI’s indicated move to seek and procure a ruling from the AAR, on its members’ behalf, one’s honest gut feeling is, before doing so, it will not but be prudent to keep in focus the following:

    1) Any ruling of the AAR will be binding on the ‘applicant’ ; subject to , if aggrieved , the right to go in appeal to the AAAR, for a final verdict .

    2. It is seen to be not beyond doubt that, even if ICAI, in its representative capacity, goes ahead and succeeds in obtaining a Ruling, problem could arise if that turns out to be adverse to its members.

    3. Lastly, in any event, approach to the AAR may have to be considered and decided, keeping in full focus the inherent perils as envisaged and given vent in certain concerned quarters based on practical experience. in he recent past.

    (May cross refer the Previous Posts)

    Courtesy

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