our salesman goes to sales & marketing work in their area.
frequently they used rental hire car.
Hire car expenses they claim to company & get amount.
some hire car Bill's in the name of company & some hire car Bill's in the name of salesman name.
we accounted the expenses conveyance / Travelling expenses.
can we are liable to pay GST RCM on rental car services.Please guide.
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Rental Car
Replies (9)
Quick Summary
Why reverse charge is spplicable here?
If you are a Body Corporate and cost of fuel is included in charges and service provider has not issued tax invoice with 12% GST , then you are liable to pay GST under RCM.
Yes we are a body corporate ,cost of fuel is included in charges ,service provider has not issed tax invoice , but some invoice is in the name of sales man name , some invoice is in the name of our corporate company name.pl.guide
As per Notification 13/2017 under S.no. 15, Any person providing renting of Motor vehicle where the cost of fuel included to the Body Corporate, the Recipient is liable to do RCM.
Note : Any person can be URD or Who is not paying GST @ 12% on FC.
Note : Any person can be URD or Who is not paying GST @ 12% on FC.
What about rental car bill is in the name of sales person , can liable to pay RCM.
RCM is done by Recepient of services & in this case the ultimate recipient is company who is paying for it.
Thanks for valuable guidance
| Originally posted by : Pankaj Rawat | ||
 |
RCM is done by Recipient of services & in this case the ultimate recipient is company who is paying for it. |  |
Sir, is the reasoning behind this because u/s 2(93) of CGST Act, recipient includes his agent; and here salesmen are treated as agents of the company?
Employee use this rent car in his personal capacity for use to company sales work & this expenses reimbursed by company .Is this supply of service consider u/ s 7 of cgst act as employ ee - employeer relationship & does not treated as supply or consider supply of service as agent of company u/s 2(93) of chat act.
Whether we pay RCM by taking reference of sec.2 (93) or not to pay by taking reference of sec.7 as employee - employer relationship.
Please give your valuable opinion.
Whether we pay RCM by taking reference of sec.2 (93) or not to pay by taking reference of sec.7 as employee - employer relationship.
Please give your valuable opinion.
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