pvt Ltd co give service of car rental
he collect 5% tax from client in
this case he can not take ITc
he purchase car rent service
1)can he pay rcm & claim ITC on rcm which is he pay
2) or he not liable to pay rcm
Menu
Pvt Ltd co give service of car rental
Replies (1)
As a private limited company providing car rental services and collecting 5% tax from clients, the following points can be considered:
-
The company cannot claim Input Tax Credit (ITC) on the tax collected from clients because it falls under the category of services on which the company is required to pay tax under Reverse Charge Mechanism (RCM).
-
The company is liable to pay tax under RCM for the car rental service it has received, and it cannot claim ITC on the tax paid under RCM.
To learn more about RCM under GST on Goods Services click here
For more detailed information, visit Swipe Blogs
Recent Topics :
- Taxation of Gift - Father to Daughter
- TDS on Property Purchased above 50lakh
- Accounting Treatment in Tally for Restaurant Sales
- Form 146 required
- Rule 86(B) Applicability
- ROC FILINGS FY2025-26
- Mismatch in 26AS
- How Can a Trader Utilise Approximately ₹1.20
- How Can Law Students Present Papers at Conferences
- On which amount 200% penalty under section 270A is
Related Topics :
CAclubindia
