Reverse charge on rent a cab
This query is : Resolved
16 January 2014
Hi, seniors..
during vouching of journal voucher of co. i come to know that, in one of a bill of taxi co. bill is in the name of employee and co. has reimbursed him this charges and co. said as bill is in the name of employee reverse charge is not applicable. do contention of co. is right?
whether credit of this reverse charge will be admissible... thank you...
during vouching of journal voucher of co. i come to know that, in one of a bill of taxi co. bill is in the name of employee and co. has reimbursed him this charges and co. said as bill is in the name of employee reverse charge is not applicable. do contention of co. is right?
whether credit of this reverse charge will be admissible... thank you...
16 January 2014
Yes company contention on reversecharge applicability is correct as per provisions
.
.
Though company is reimbursing the Bill, the service receiver is the employee, if the Bill of the service provider is in name of employee
[In fact, the motor vehicle operator is not likely to know that the service receiver is company and will have to charge service tax in normal course, if he is otherwise liable].
In such cases, the company will not be liable under reverse charge. However, if the bill is in name of the company, reverse charge will apply, if the service provider is individual, HUF etc.
.
.
Cenvat credit not available to company
.
.
Though company is reimbursing the Bill, the service receiver is the employee, if the Bill of the service provider is in name of employee
[In fact, the motor vehicle operator is not likely to know that the service receiver is company and will have to charge service tax in normal course, if he is otherwise liable].
In such cases, the company will not be liable under reverse charge. However, if the bill is in name of the company, reverse charge will apply, if the service provider is individual, HUF etc.
.
.
Cenvat credit not available to company
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
- Opting our of sec 44AD
- Form 121 & TDS deduction
- GST Treatment of Insurance Commission for Existing GST Holder
- Inter corporate deposits
- Invoice V/S Goods receipt Note Date
- Regarding appeal to GSTAT
- Multiple trade mark
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- LC charges in relation to Asset purchased should be Capitalised ?
- Transporter Declaration form
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
- Clarification Required on GST Rate & HSN Classification – Millet-Based Probiotic Drink
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
