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RCM on transportation

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Khushbu

70 Points Posted on 15 February 2020

During 17 18 gst audit
I found 1500000 tempo rent under profit and loss a/c
And during gst period it was around 12 lak.
And payment made by cheq
I.T.tds was applied..

All transportation is in local delivery..
No billty

Cheq paid amount in laks

RCM APPLICABLE..?????

Replies (3)

Quick Summary

This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) on transportation services, particularly concerning Goods Transport Agency (GTA) services. It highlights that RCM is generally applicable to GTA services, with a GST rate of 5%. For non-GTA services, RCM was not applicable from July 1st, 2017. The audit found significant tempo rent expenses, prompting a review of RCM obligations for local deliveries paid via cheque where TDS was applied.

sujith kumar dasa

banglore

988 Points Posted on 15 February 2020

RCM is applicable on GTA i.e., Goods Transport Agency service, if it is only renting of motor vehicle then no GST under RCM. However for period 1st Jul 2017 to 13th oct 2017, RCM was applicable on unregistered purchases and same has to be paid.

Anshuman Basu

account -GST

1181 Points Posted on 15 February 2020

Yes RCm applicable on u

RAJA P M

"Do the Right Thing...!!!"

77833 Points Posted on 16 February 2020

The Transport services received from GTA then RCM is applicable and GST rate @ 5%...

In case the transport service received from Non-GTA the RCM not applicable from 1st July-17...