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Charge of gst

In the amendment:- new service under reverse charge mechanism, in services of lending of securities, Can u give a example of when will the borrower has to pay Gst ?


Swathi Krishna

Swathi Krishna

CA Inter

7K+

09-Jul-20 19:56

13

Answers (2)

Best Answer

"The lender temporarily lends the securities held by him to a borrower and charges lending fee for the same from the borrower. The borrower of securities can further sell or buy these securities and is required to return the lended securities after stipulated period of time. The lending fee charged from the borrowers of securities has the character of consideration and this activity is taxable in GST. The Borrower is liable to pay tax under RCM @18%once he gets the securities into his hands (transaction is complete)"


KEERTHI PRIYA

KEERTHI PRIYA

Moderator

11-Jul-20 09:18

Thank you


Swathi Krishna

Swathi Krishna

CA Inter

7K+

11-Jul-20 09:51

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