Reverse charge mechanism

This query is : Resolved

Manoj Chawla (Querist)
Follow

20 December 2013 Dear sir,

let me know reverse charge mechanism would be applied or not on cash payment for renting motor.

Regards
Manoj Chawla

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

20 December 2013 Reverse charge in renting or hire of Motor vehicle designed to carry passengers

1)Reverse charge when renting to a person who is not in similar line of business.

2)Service Provider should be HUF, Individual, firm

3)Service receiver – Business entity registered as body corporate

4)Tax on 40%, if Cenvat credit is not availed by the service provider – No Cenvat credit in most of the cases – hence cost to company.

5)If motor vehicle is taken on hire (operating lease) without driver, it is ‘transfer of right to goods’. Then it is deemed sale of goods and Vat will apply – not service tax.

Thanks & regards
Ganeshbabu k

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SARAVANAN PALANISAMY

Prashant Kotecha

Subbiah S

Aishwarya N

CA Bijo scaria

Subscribe Now

Reverse charge mechanism

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

GST CONSULTANT

Accountant

CA Final

GST CONSULTANCY