Reverse charge mechanism
This query is : Resolved
05 August 2013
Dear sir
If (i)the director of a pvt co.uses the cab service for some official purpose (ii)hired a cab for providing support service to banks..
Can these two situations attract reverse charge mechanism.
Thanks
If (i)the director of a pvt co.uses the cab service for some official purpose (ii)hired a cab for providing support service to banks..
Can these two situations attract reverse charge mechanism.
Thanks
05 August 2013
Yes reverse charge is applicable to company in the given cases when payment is made by the company.
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Ganeshbabu K
(Expert)
05 August 2013
if the bill is in the name of director reversecharge not applicable
if the bill is in the name of company reversecharge applicable
if the bill is in the name of company reversecharge applicable
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07 August 2013
sir..bt as per notification it is stated that RCM is applicable if cab is hired for carrying passengers..
kindly reply
kindly reply
Ganeshbabu K
(Expert)
07 August 2013
Yes,,in your case if bill is in the name of director, here service receiver is individual and consequently RCM not applicable
if bill is in the name of company RCM applicable
yes,,it may be your directors, or employees who ever uses services of rent a cab they are passengers to cab service provider
if bill is in the name of company RCM applicable
yes,,it may be your directors, or employees who ever uses services of rent a cab they are passengers to cab service provider
Ganeshbabu K
(Expert)
07 August 2013
As i said to you..
You can avoid RCM on rent a cab by getting bills in the name of employees or in the name of directors...and and make it as -reimbursement to employees,,
as here service receiver is individual reversecharge not applicable
You can avoid RCM on rent a cab by getting bills in the name of employees or in the name of directors...and and make it as -reimbursement to employees,,
as here service receiver is individual reversecharge not applicable
07 August 2013
sir first case is clear but in 2nd case co. is providing supporting service to banks i.e cash transfer etc. for this purpose co hired a cab.
so in this case there is no passenger...i want to knw the meaning of passenger in this context.
thank you
so in this case there is no passenger...i want to knw the meaning of passenger in this context.
thank you
Ganeshbabu K
(Expert)
07 August 2013
passenger means..cab used for transportation of persons
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