Update on RCM - Vehicle Hire Charges

Kalpesh P   15 October 2019

Kalpesh P

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Required help to understand changes in RCM on Vehicle hire charges


RAJA P M ("Do the Right Thing...!!!")     16 October 2019

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No more specific changes. If Service received from GTA then Rcm applicable as per quoted limits...

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Sunil (CA)     16 October 2019

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RCM is applicable on vehicle hire charges w.e.f 01st October, 2019 for any body corporate located in the taxable territory if such services is received from any person other than a body corporate, paying central tax at the rate of 5% on renting of motor vehicles with input tax credit only of input service in the same line of business.

So vehicle hire charges incurred by a company will be liable to RCM, if the service is taken for any person other than another body corporate in the similar business charging GST @ 5%.

Please note “Body Corporate” has the same meaning as assigned to it in clause (11) of section 2 of the Companies Act, 2013.

Please read notification 22/2019 Central Tax Rate notification.

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