RCM Renting a Motor vehicle 1-10-19

This query is : Open

P.Harish (Querist)
Follow

04 October 2019 Dear Expert,
Notification No 22/2019 Centre Tax is issued on 30th September19 & imposed RCM on few services Rental a motor vehicle is one of them. We are in doubt about description in column no 3. No doubts recipients is Body corporate.
What is its meaning?
On What % & when it will be levied?
Kindly brief its conditions laid down in the Notification

Thanks
G Harish

CA Ashwini Seeram

CA Ashwini Seeram (Expert)
Follow

04 October 2019 Renting of motor vehicle has been included under reverse charge mechanism only if it is provided TO a body corporate BY a non-body corporate and the supplier (Non-body corporate) opts for 5% rate. The applicable rate is 5% on the value charged (which should be inclusive of fuel cost). In other cases liability under RCM will not exist for renting of motor vehicle(i.e. where fuel cost is not part of the consideration for the supply).

P.Harish

P.Harish (Querist)
Follow

04 October 2019 Thanks Ashwini Ji for reply. Again questions is arrive, Say
1) Mr X - Unregistered- provided vehicle to Body corporate on monthly rent , what % wiil be. for RCM (a) fuel by Body corporate (b) fuel by Mr X

2) Mr Y - Registered- provide Car to Body corporate & charged GST @5% in the Bill . What wiil be RCm rate .
Kindly elaborate
Thanks

Upgrade to CAclubindia Pro. Subscribe Now!