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Loader -RCm

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sona1

MANAGER

281 Points Posted on 19 April 2021

We have purchase a new machine and for this machine Unloading –Loading purpose our Loader (Who is Not REGISTER in GST) charge Rs. 35000.00 Invoice (without GST) . Please suggest we will pay RCM against this Invoice Value Rs. 35000.00

Replies (2)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) implications for loader services provided by unregistered entities. If a loader is not registered under GST and does not issue a consignment note, the service is generally not considered a 'Goods Transport Agency' (GTA) service, meaning Reverse Charge Mechanism (RCM) is unlikely to apply. However, the recipient of the service may be liable to deduct Tax Deducted at Source (TDS) under Section 194C of the Income Tax Act.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 19 April 2021

I think It will not attract RCM as it is not registered under GST

CMA Poornima Madhava

CMA

9106 Points Posted on 19 April 2021

Such service providers are not regarded as GTAs (unless GTA is providing integrated service of transportation, loading and unloading) and hence RCM liability would not arise in this case, as no consignment note would be issued by independent person providing loading/unloading service. Thus, no GST to be paid on RCM in this case. However, provisions of TDS u/s 194C would be attracted (i.e. you are required to deduct tax at source u/s 194C at applicable rate).