RCM w.e.f. 01.10.2019

This query is : Resolved

CA. Anshul Medatwal (Querist)
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04 October 2019 RCM on renting of motor vehicle w.e.f 01.10.2019, whether this is applicable only on those who take motor vehicle on rent and then further renting that motor vehicle to others (work like intermediary) or self owned owner renting their vehicle? In notification, they have told any person other than a body corporate,
paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business.

Kindly clarify...

CA Ashwini Seeram

CA Ashwini Seeram (Expert)
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04 October 2019 Renting of motor vehicle has been included under reverse charge mechanism only if it is provided TO a body corporate BY a non-body corporate and the supplier (Non-body corporate) opts for 5% rate. The applicable rate is 5% on the value charged.

CA. Anshul Medatwal

CA. Anshul Medatwal (Querist)
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05 October 2019 As per notification, Supplier shall take credit of input service of same line of business, what about if supplier owned vehicle and provide services, because in such scenario there is no same line of business. After that supplier become unregitered than still RCM applicable or not because at present there is no RCM on unregistered person even after amendments w.e.f 01.10.2019

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