My firm is a proprietorship. I have provided service to client (a Body Corporate) thru a vendor. All three of us are registered under GST. As per the notification dated 30-Sep-19, my client will pay GST directly i.e I shall not charge GST in my Invoice. But my vendor has applied GST in his invoice to me. Is this right or wrong. How do I explain to my vendor ? Please help.
Read more at: https://www.caclubindia.com/forum/rcm-u-s-9-3-notifications-22-2019-central-tax-rate-530778.asp?offset=1
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Services provided by way of renting of a motor vehicle provided to a body corporate.
Replies (1)
You vendor is correct , He is providing services to you (You are not Body corporate) , hence RCM is not applicable.
As per Notification 22/2019 CT(R) , RCM is applicable when The Recepient is Body corporate .
Hence When your vendor is providing service to you its not cover Under RCM , & If you vendor has opted to pay 12% on FC then even though you are body corporate ,,the RCM is not Applicable.
RCM Applicability :
1.Service Provider is Not Body Corporate
2.Service provider has opted the scheme for 5% on FC (Without ITC)
3. Recepient is Body Corporate
RCM is applicable only when All the above 3 condition satisfied.
As per Notification 22/2019 CT(R) , RCM is applicable when The Recepient is Body corporate .
Hence When your vendor is providing service to you its not cover Under RCM , & If you vendor has opted to pay 12% on FC then even though you are body corporate ,,the RCM is not Applicable.
RCM Applicability :
1.Service Provider is Not Body Corporate
2.Service provider has opted the scheme for 5% on FC (Without ITC)
3. Recepient is Body Corporate
RCM is applicable only when All the above 3 condition satisfied.
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