Hiring or renting of Motor vehicle: RCM applicablity

RCM 222 views 2 replies
Is RCM applicable on hiring or renting of motor vehicles?
Replies (2)
In term of Notification 22/2019 , yes RCM is applicable only hiring of motor vehicles, but subject following conditions:

1Supplier of Service provider is Non corporate body
2. Supplier has opted scheme of 5% with limited ITC
3. Receptient is Body corporate.

Hence RCM is applicable when all the above conditions are fulfills

Currently we (Body corporate) are paying RCM on 5% on vehicle hiring. Now supplier wants to opt forward gst. If he charges 12% then our cost will be increased as ITC is not available for us. Shall we allow them to charges 12%?


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