Is RCM applicable in case of food expenses incurred by employees. These expenses are reimbursed by the company
Tara Khandelwal (Student CA Final ) (293 Points)
10 August 2017Is RCM applicable in case of food expenses incurred by employees. These expenses are reimbursed by the company
Hamza Ansari
(Accountant)
(217 Points)
Replied 10 August 2017
NO. RCM is not applicable on food expenses.
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 10 August 2017
Its a transaction between employer and employee and the amount has been reimbursed, no RCM applicable.
SANDEEP JAIN
(Tax Consultant)
(487 Points)
Replied 10 August 2017
CA Altamush Zafar
(GST Consultant)
(15907 Points)
Replied 11 August 2017
Tara Khandelwal
(Student CA Final )
(293 Points)
Replied 11 August 2017
It will be covered under Staff Amenities and so gst will not be applicable. Correct me if I am wrong
jayesh
(accountant)
(361 Points)
Replied 11 August 2017
company paid employee for traveling exp (traveling for company purpose) like food, ticket, auto charge in this case gst is applicable
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 11 August 2017
Again its a transaction b/w employer and employee. No GST
GST will only be applicable if the employee presents bill in company name with company GSTIN on it.
Priya Balaaji
(Manager Finance)
(23 Points)
Replied 03 April 2019
Hi,
The company is providing food to all its employees, and treat it as staff welfare. But did not recover it from employees. The food supplier is an unregistered dealer. Do the company need to pay RCM. If the company need to pay RCM does it can avail ITC on that??
Kindly clarify..
Kindly
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 04 April 2019
In your case the transaction does not attract RCM since RCM u/s 9(4) is applicable on specified persons only. Govt has not notified any person yet.
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