RCM Applicable- Car hiring service.
This query is : Resolved
21 November 2019
Dear Sir/Madam,
I am working in a Software company which is Public limited company.
The Vendor / service provider, which is non-corporate, is serving as a cab facility for our employee pick and drop and when we need it for business travel, we hire the car for the time being from the same vendor.
As per notification 22/2019 CT-
Vendor are telling us that you will have to pay GST directly to government under Reverse Charge Mechanism.
Please guide us that when the company takes car hiring service from any non corporate then the RCM will be applicable to the company.
Thanks & Regards,
Vishal Gupta
I am working in a Software company which is Public limited company.
The Vendor / service provider, which is non-corporate, is serving as a cab facility for our employee pick and drop and when we need it for business travel, we hire the car for the time being from the same vendor.
As per notification 22/2019 CT-
Vendor are telling us that you will have to pay GST directly to government under Reverse Charge Mechanism.
Please guide us that when the company takes car hiring service from any non corporate then the RCM will be applicable to the company.
Thanks & Regards,
Vishal Gupta
21 November 2019
Yes . If cab service is provided to Corporate, then the corporate is to pay GST under RCM. You can take the credit for the same in the month in which RCM GST payment is made.
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21 November 2019
Thank you so much for your support. Can you please share any link or notification so that we can confirm our management.
21 November 2019
Yes, you have to pay GST Under RCM
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21 November 2019
https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=8768
11 December 2019
Dear Sir,
Please confirm for the above case Input credit is only available for same line of business or other corporate are also eligible for input credit.
Please confirm for the above case Input credit is only available for same line of business or other corporate are also eligible for input credit.
11 December 2019
yes , You are correct. The body corporate is to pay GST under RCM and not eligible to take credit like freight, director sitting fees and Advocate fees. There will be exemption to take credit if the employer is subject to statutory obligation ( Like providing CAB to women employees during the night hours)
12 December 2019
Thank you sir for your support.
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