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Rcm in case of ola bills

02 January 2016

An employee is taking cab at night which is subsequently reimbursed by employee. Should the employee pay RCM on the said bill or not. bill is in the name of employee.

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CA Chandra Prakash (9873059766 Increasing knowledge through sharing) (296 Points)
Replied 04 January 2016

RCM is applied only when individual, partnership firm, proprietorship and huf providing the facility of renting of motor cab to the company. thus, in the above case RCM is not applicable. however if company is engaged in providing cab facility then merely on the basis of invoice issued in the name of employee does not tantamount RCM is not applicable.

in short, if company is not linked with such cab facility provider in any manner or employee is independently/personally using the cab facility, then RCM will not be applicable.