As per notification 22/2019
If Services provided by
any person other than a body corporate,
(paying CGST/SGST at the rate of 2.5% or IGST at the rate 5℅on renting of motor vehicles with input tax
credit only of input service in the same line of business) by way of renting of a motor vehicle provided to a body corporate
Then
RCM is applicable under sec 9(3) of CGST Act and service receiver subject to conditions is liable to pay GST on input service availed under RCM
But
If service provider(other than Body Corporate) is charging 12% to body corporate.
RCM is applicable or not?
Can any one explain?
Menu
RCM us 9(3) notification 22/2019
Replies (1)
No .... cannot charge 12%.
As the Notification is prescribing to charge 5% on FC to Recepient other than Body corporate & can claim ITC only if availing services from same line of Business.
Eg: As for GTA given option to charge Gst 12% on FC (with ITC) but for the same the seperate Notification 22/2017 CT(R) has been issued.
Hence In my view in above case the service provider cannot charge 12% with ITC
As the Notification is prescribing to charge 5% on FC to Recepient other than Body corporate & can claim ITC only if availing services from same line of Business.
Eg: As for GTA given option to charge Gst 12% on FC (with ITC) but for the same the seperate Notification 22/2017 CT(R) has been issued.
Hence In my view in above case the service provider cannot charge 12% with ITC
Recent Topics :
- DTAA benefits
- SUPPLEMENTARY AGREEMENT FOR ADDING A PARTER IN TN
- Part availmement of ITC in case of rejection of su
- Due date for itr 5 no audit with loss for fy 25 26
- Capital Gains Mismatch AIS
- Inward E-way bill from Tally Prime 7.1
- Query regarding exemption under Section 10(10AA) &
- NPO registered under sec 8 itr filing
- Form 144 (Earlier 27Q) – Reason Code (A/C/G/
- Nps taxation
Related Topics :
CAclubindia
