RCM Applicable- Car hiring service.

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This query is : Resolved

VISHAL GUPTA (Querist)

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

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN

(Expert)

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.

Message likes : 1 times

VISHAL GUPTA

VISHAL GUPTA (Querist)

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.

CA Shiv Kumar Sharma

CA Shiv Kumar Sharma (Expert)

21 November 2019 Yes, you have to pay GST Under RCM

Message likes : 1 times

Gokul Sharma

Gokul Sharma (Expert)

21 November 2019 https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=8768

VISHAL GUPTA

VISHAL GUPTA (Querist)

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.

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN

(Expert)

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)

VISHAL GUPTA

VISHAL GUPTA (Querist)

12 December 2019 Thank you sir for your support.

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