emplyee of company take a cab on rent for office use and supplier of service issued invoice in the name of employee
after that employee submitted the invoice to the company and taken reimbursment from company
my query is that
will company be liable to pay gst under RCM or not?
note : rent a cab fall under RCM if service provider is other then body corporate and service receiver is a body corporate
note : service provider is a unregistered proprietor under gst
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Rcm on reimbursment of expenses incurred by employee
Replies (1)
In GST reimbursement of expenses is attract GST. Yes Expense incurred in capacity of Pure Services under Rule 33 is not exempted in GST.
As per Section 2(93) of CGST Act Company is recipient who is ultimately making payment to cab dealer on behalf of Employee.
So In term Notification 22/2019 CT rate:
Services provided by way of
renting of a motor vehicle
provided to a body corporate by any person other than body corporate RCM is applicable.
Thus need to do RCM .
Note : Service providers is charging 12% on FCM than RCM is not Applicable
As per Section 2(93) of CGST Act Company is recipient who is ultimately making payment to cab dealer on behalf of Employee.
So In term Notification 22/2019 CT rate:
Services provided by way of
renting of a motor vehicle
provided to a body corporate by any person other than body corporate RCM is applicable.
Thus need to do RCM .
Note : Service providers is charging 12% on FCM than RCM is not Applicable
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