Dear all,
I have a query regarding transaction of cab rent service..i have following issues.
we are body corporate and service provider is individual.
1) if cab rent provider has issued invoice with 5% gst charged on invoice and if we had paid all amount including GST to vendor, is there any liability under rcm at our side?
2) if we have taken tax credit of 5% gst charged on bill, what are the non compliance at our end as it is blocked under Act.
3) what are the non compliances in this case of we have taken wrong tax credit and avail the same?
thanks & regards,
Harshal raval
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Rcm under cab rent service and itc
Replies (3)
The liability under rcm falls upon your side, you being a body corporate, no matter supplier has charged gst or not. In this case, first you need to reverse the itc taken alongwith interest and after paying 5 percent gst under rcm take itc. otherwise on departmental enquiry penalty invokes.
Thanks for the resolution..
if i am reversing the itc and paying along with interest, itc in any case cant be avail as cab rent is under blocked credit as per my understanding..
if i am reversing the itc and paying along with interest, itc in any case cant be avail as cab rent is under blocked credit as per my understanding..
Yes itc is blocked.
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