Is RCM applicable o purchase of Grills, Railings, & labour from URD supplier for repairs & maintenace of premises, amount involved is Rs.11,000/= only
Buyer/Receiver of services is Trader, but not trading in above items, these iterms purchased for repairs & maintenance.
Gone through the list of items under RCM, these items & labour is not covered in list, but I am still doubtful whether RCM is applicable or not, seeking expert guidance.
Please guide.
To determine if RCM is applicable in this scenario, we need to consider the following factors:
1.Nature of the transaction: The transaction involves the purchase of goods (grills and railings) and services (labour) for repairs and maintenance of premises.
2.Supplier's status: The receipient (buyer) is a trader, but not trading in the items purchased (grills,railings, and labour).
So RCM is not applicable on the purchases of grills, railings, and labour from an unregistered dealer for repairs and maintenance of premises.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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