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.
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