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
As a private limited company providing car rental services and collecting 5% tax from clients, the following points can be considered:
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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).
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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
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