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Reverse charge RCM rent on rent a cab
Government has issue GST rate notification no 22-2019 , in this notification government has inserted RCM on rent a cab except body corporate @ 5%.My query is that in case of body corporate which has been in buisness of rent a cab, then what rate of GST they have charged @ 18% or 12%, please explain in details?
Replies (4)
The body corporate shall be entitled to credit vide provisions of Section 16 r.w.s. 2(98) of the Act. Accordingly the even if the body corporate pays 5% tax, it is sufficient compliance of notification 22/2019 and credit can be claimed for the reverse charge so paid as per the provisions of Section 16. The cab provider was not eligible for ITC but the recipient would be eligible for ITC even if the tax paid is @ 5%.
Dear Shashi
RCM is applicable only if Recepient of Service should be Body Corporate .
And
Services provider is required to charge 5% Without ITC on FC to Recepient who is not a Body Corporate.
Note. : ITC is available to services provider only on the inward supply from same line business
RCM is applicable only if Recepient of Service should be Body Corporate .
And
Services provider is required to charge 5% Without ITC on FC to Recepient who is not a Body Corporate.
Note. : ITC is available to services provider only on the inward supply from same line business
ITC claimed on same line business only non body corporate. Body corporate ITC inelizable
ITC claimed on same line business only non body corporate. Body corporate ITC inelizable
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