ICAI Annual Membership Fee Payment and GST Credit-ICAI can not raise invoice in partnership firms name. It can accept GSTIN nos of proprietorship firms only
As per the latetst communication from the Indirect Taxes Committee of ICAI , the committee has considered the request raised by the Chartered Accountants regarding invoicing by ICAI to CA firm for membership fees and quoting of GSTIN of CA firm in the invoices,
As per communication from the Committee, after a deliberate discussion in a recent meeting it was held that the liability to pay the membership fees is of individual member being the recipient of service as defined under the CGST Act section 2(93) read with Rule 46 which specifies that GSTIN if any of recipient be mentioned.
It has been stated that under the ICAI Act, ICAI can raise invoice only to its member in their individual name only and accept GSTIN numbers of member having GSTIN number in Individual capacity i.e proprietorship firms. As per Section 3 of ICAI Act, all persons whose names are entered in the Register maintained under the provisions of the ICAI Act constitute a body corporate by the name of the Institute of the Chartered Accountants of India and all such persons are known as members of the Institute. It is only a member who has obtained from the Council a certificate of practice, who is entitled to practice as provided for under Section 6 (1) of the ICAI Act. Section 6 (2) of ICAI Act provides for payment of annual fees for certificate of practice by the member.
Attention of the members have been drawn to the Section 2(93) of the Central Goods and Services Tax (CGST) Act, 2017, according to which, unless the context otherwise requires, the term “recipient” of supply of goods or services or both, means—
(a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration;
(b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and
(c) where no consideration is payable for the supply of a service, the person to whom the service is rendered,
and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied.
It has been further stated that the Committee also referred to the opinion of the ICAI consultant, “ICAI has relationship with member only in his individual capacity, as such. Therefore, ICAI can issue Tax invoices to its’ members in their individual names only & not in the name of their partnership firm/Company where the entity makes reimbursement. Consequently, only sole proprietor members will only get ITC of GST paid on membership fees.”
No invoice can be raised in partnership firms name
The Committee has therefore stated that ICAI cannot raise invoice to “Partnership Firm” or Company for the membership fees paid by them on behalf of the member.
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