RCM Liability on Loading charges

Dear Sir,

We received a G.R. from Transporter and he charged the Freight Rs. 9000 and loading charge Rs. 900. We charges the freight Rs 9000 on our sale invoice so we will not charge RCM on Rs. 9000. Please suggest for the loading charge. Should we calculate RCM on it or not?

Replies (4)
Quick Summary
This discussion clarifies the Reverse Charge Mechanism (RCM) for loading charges related to transportation services. While freight charges may be passed on to customers, RCM is generally applicable to the loading charges. This is because loading and freight are often considered a composite supply, with transportation being the principal service, and RCM needs to be accounted for on the entire amount.

No RCM on loading charges
Not required to charges on Loading charges.
No RCM

Even if you charge Transport in your sales invoice to your customer you will still have to pay RCM on transport charges of the transporter because that is a different transaction and you selling goods is a different transaction. RCM will have to be paid on 9900 since freight and loading becomes composite supply with the principal nature of transportation.

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