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
- TDS 194-T applicability
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- Section 50-fixed asset-->building ceases to exist
- Regarding Applicability of Tax Audit u/s 44AB
- Consolidated financials
- Putting a heading on received mail
- Withdrawal in cash from partners capital account by partner
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Tds on commission charges
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
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
