RCM on Rent-a-Cab Services: Unregistered Suppliers

Applicability of RCM

GEETHA MEDISETTI

42 Points Posted on 06 July 2020

If a company receives a vehicle on rent for transportation of passengers from a unregistered supplier whether RCM applies or not AND If it applies what is the rate at which it has to pay tax under RCM.

Replies (6)

Quick Summary

This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) for passenger transportation services when hired from unregistered suppliers. It confirms that RCM applies to such services from 1st January 2020, specifically at a rate of 5% GST. The notification referenced is No. 29/2019-Central Tax (Rate) dated 31-12-2019.

KRISSHNAN KP

1708 Points Posted on 06 July 2020

RCM not possible

CA Rashmi B

Assistant Manager

354 Points Posted on 06 July 2020

Rent a cab service availed from unregistered party from 1st January 2020 would be liable to GST UNDER RCm at the rate of 5%

GEETHA MEDISETTI

42 Points Posted on 06 July 2020

Is it is from 01/01/2020 onwards only or even before

Ravi SADhiyan

Practice

3087 Points Posted on 06 July 2020

Originally posted by : GEETHA MEDISETTI
	If a company receives a vehicle on rent for transportation of passengers from a unregistered supplier whether RCM applies or not AND If it applies what is the rate at which it has to pay tax under RCM.