Households luggage

This query is : Resolved

Rajkumar Gutti (Querist)
Follow

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.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

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.

Rajkumar Gutti

Rajkumar Gutti (Querist)
Follow

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.

Rajkumar Gutti

Rajkumar Gutti (Querist)
Follow

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.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

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.

Rajkumar Gutti

Rajkumar Gutti (Querist)
Follow

28 February 2026 Ok, sir, धन्यवाद. I am fully satisfied.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok