GTA compare RCM or FCM

in which Case GTA is more beneficial RCM (in which recipient will pay tax)
or FCM( in which supplier has to pay tax 12% in which he can claim ITC)
if in FCM can he collect tax from recipient and paid
Replies (2)
Quick Summary
This discussion explores whether GTA services are more beneficial under Reverse Charge Mechanism (RCM), where the recipient pays tax, or Forward Charge Mechanism (FCM), where the supplier pays 12% tax and can claim Input Tax Credit (ITC). While FCM is preferable if recipients agree to pay the 12%, transportation taxpayers often favour RCM. A key challenge arises when transportation and other services are billed together, making it difficult to determine the correct tax mechanism, especially in complex scenarios like coal transportation.

If service receipants are ready to pay 12% under FCM, it is better option.

Transportation tax payers prefer RCM. When supply includes transportation and billing is inseparable, it is very difficult to ascertain the machanism. Exple; in coal transportation covering loading and unloading and supervision service.

Cd  you pls any one clarify the machanism 

 

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details