06 June 2021
Would a local authority be covered under the definition of a body corporate as per Companies Act, 2013, as tax on vehicle hire charges are liable to be paid under RCM if the service recipient is a body corporate. If the recipient is a local authority, is it required to pay tax under RCM? The definition of body corporate is: “body corporate” or “corporation” includes a company incorporated outside India, but does not include—
(i) a co-operative society registered under any law relating to co-operative societies; and
(ii) any other body corporate (not being a company as defined in this Act), which the Central Government may, by notification, specify in this behalf. Since the definition is inclusive in nature, can it be said that local authority is covered in the def of body corporate?
CAclubindia
