Rent paid for Machinery Hire Charges

if a Government Contractor paid rent for Machinery Hire Charges
Is GST RCM Applicable?
Replies (4)
Quick Summary
This discussion clarifies whether GST Reverse Charge Mechanism (RCM) is applicable to machinery hire charges paid by contractors, including government contractors. The consensus is that RCM does not apply to these charges as they are considered to be for the furtherance of business. The specific entity receiving the payment from the contractor is also a point of consideration.

There is no RCM applicability on Hire charges of Machinery being paid by any contractor whether government or non-government.

 

Regards

 CA Sandesh Mahipal

The reason being paid for furtherance of business.
The reason being paid for furtherance of business.
Dear
To whom the contractor is paying rent ??

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