Reverse charge mechanism

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This query is : Resolved

P J Joseph (Querist)

08 January 2019 As per para 14 of Notification No29/2018 - Central Tax Rate, RCM has been made applicable to any person other than Body Corporate for Security services.
Since most of the Security services providers are Pvt Ltd, LLP, OPC or Proprietorship companies they are "Body Corporate". If so, Notification No. 29/2018 will not be applicable to almost all security service providers.
Could some one kindly clarify.

Udaya Chandran

Udaya Chandran (Expert)

08 January 2019 Yes, RCM is not applicable to the security service providers who are body corporate. They need to discharge GST liability by themselves.

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)

08 January 2019 A body corporate shall include: a company, a foreign company, a corporation, a statutory company, a statutory body, an LLP, etc. and such bodies that have separate legal existence.

P J Joseph

P J Joseph (Querist)

08 January 2019 If the RCM under the said Notification is not applicable to a Body Corporate, this notification has no meaning since all security service providers are Body Corporate.

P J Joseph

P J Joseph (Querist)

08 January 2019 If the RCM under the said Notification is not applicable to a Body Corporate, this notification has no meaning since all security service providers are Body Corporate.

P J Joseph

P J Joseph (Querist)

08 January 2019 Can someone kindly explain the likely objective behind the Notification on RCM for security services, if Body Corporate is excluded from the benefit of RCM.
Thanks

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