Households luggage
This query is : Resolved
Quick Summary
27 February 2026
Employee house hold luggage transported by gta.
Bill is in the name of employee. Expenses debited under staff welfare expenses. But payment made by company.
Is RCM applicable under GTA service.
Bill is in the name of employee. Expenses debited under staff welfare expenses. But payment made by company.
Is RCM applicable under GTA service.
27 February 2026
Yes, Reverse Charge Mechanism (RCM) is generally applicable in this scenario because the company is the "recipient" of the service, even if the invoice is in the employee's name.
Under Notification No. 13/2017-Central Tax (Rate), the person who pays or is liable to pay the freight is treated as the receiver of the service.
While the bill is in the employee's name, if the company pays the freight, it should technically be the one discharging the RCM liability to avoid disputes during audits.
Under Notification No. 13/2017-Central Tax (Rate), the person who pays or is liable to pay the freight is treated as the receiver of the service.
While the bill is in the employee's name, if the company pays the freight, it should technically be the one discharging the RCM liability to avoid disputes during audits.
27 February 2026
Freight is reimbursed to employee.
Dr. The staff welfare account
Cr. The employee account
Then
Dr. To Employee account
Cr. The Bank account
This is the real scenario.
Dr. The staff welfare account
Cr. The employee account
Then
Dr. To Employee account
Cr. The Bank account
This is the real scenario.
27 February 2026
Freight is reimbursed to employee.
Dr. The staff welfare account
Cr. The employee account
Then
Dr. To Employee account
Cr. The Bank account
This is the real scenario.
Dr. The staff welfare account
Cr. The employee account
Then
Dr. To Employee account
Cr. The Bank account
This is the real scenario.
28 February 2026
If you are debiting it to employee's account as perquisite, then RCM not applicable. But if you are debiting it as freight (paid via employee's acc) RCM will apply.
28 February 2026
Ok, sir, धन्यवाद. I am fully satisfied.
28 February 2026
My pleasure.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Unanswered Queries
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- RELATED TO TRIBUNAL APPEAL
- HOUSING LOAN ISSUE
- TDS AND ITR ISSUE
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- ITR 4 and Bank transactions
- RATE AND HSN CODE
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
