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Applicability of RCM on Carriage Outwards

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This query is : Resolved

SUDHEEP M (Querist)

30 March 2022 Sir,

I need clarification regarding applicability of reverse charge in the following situation. I have paid carriage outwards charges for delivering products at customer's site. For this purpose I am availing the service of local transporter who may or may not issue consignment note. Charges paid to the local transporter was in excess of Rs. 750 per day and also exceeds Rs. 1500 in aggregate. Whether I have to pay reverse charge in respect of the above carriage outward payment?

Udaya Chandran

Udaya Chandran (Expert)

30 March 2022 Please note that transportation services provided by GTA who issues consignment note are only coming under Reverse Charge Mechanism (RCM). The transportation services by local transporters who aren't GTA and don't issue Consignment Note are not coming under RCM.

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