Reverse charge mechanism
This query is : Open
27 February 2018
Suppose i avail service from cab service provider. If that cab service provoder is an unregistered person . If i am registered i am suppos to pay under RCM. But i am not into such cab service business. Then am i eligible to claim input tax credit paid under RCM for cab service availed ?
28 February 2018
No...
ITC Not available to the recipient of Cab Service.
28 February 2018
First of all currently RCM is applicable on services specified u/s 9(3), and as per section 9(3), RCM is applicable for passenger transport services provided through electronic commerce operator, whereby the electronic commerce operator will have to collect and pay GST, so the clause is not applicable in your scenario.
28 February 2018
Dear Deepa,
Kindly note that reverse charge liability of registered dealers in respect of transactions with the unregistered dealers has been temporarily suspended with effect from 28th June 2017 via notification no 8/2017 .The suspension would remain in force till 31st March 2018.
Now as far as your query regarding the availability of input tax credit is concerned, the condition for eligibility of credit of tax is that the services should have been used for the purpose of the business.
Therefore you shall be eligible to take the input tax credit.
Kindly note that reverse charge liability of registered dealers in respect of transactions with the unregistered dealers has been temporarily suspended with effect from 28th June 2017 via notification no 8/2017 .The suspension would remain in force till 31st March 2018.
Now as far as your query regarding the availability of input tax credit is concerned, the condition for eligibility of credit of tax is that the services should have been used for the purpose of the business.
Therefore you shall be eligible to take the input tax credit.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Eway bill for machinery reparing
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Gift of mutual fund units to daughter
- Under construction property in ITR
- Reporting of STCG on Property in ITR
- Building tax payment deduction in rental Income
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
