Reverse Charge - Renting of Motor Vehicle

This query is : Resolved

Kaustubh Ram Karandikar (Querist)
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28 November 2019 RCM will be applicable / not applicable on renting of motor vehicle under these situations. 1) XYZ (Non – Body Corporate) taking on hire a vehicle from PQR where PQR is charging GST @ 5% to XYZ. This vehicle is further rented by XYZ to ABC (Body Corporate) where ABC will be required to pay GST under RCM. 2) XYZ (Non – Body Corporate) not registered with GST is renting his owned vehicle to ABC (Body Corporate) where ABC NOT required to pay GST under RCM. 3) XYZ (Non – Body Corporate) is renting the vehicle to ABC (Body Corporate) & charging GST @ 12% where ABC NOT required to pay GST under RCM. 4) XYZ (Non – Body Corporate) cannot charge 5% GST to ABC (Body Corporate) if the vehicle is taken on hire from PQR where PQR is charging GST and such vehicle is given on rent to ABC (Body Corporate). Experts views please.

kathir

kathir (Expert)
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25 December 2019 01. ABC ltd liable to pay GST under RCM.
02. ABC ltd is a body corporate received service from non body corporate. so RCM applicable for ABC ltd.
03. XYZ cannot be charged GST in this case. GST paid by ABC ltd under RCM.
04. ABC ltd should pay GST under RCM.
Note : RCM applicable for Body corporate, if the cab service received from non body corporate ( Registered & Non Registered )