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RCM applicable or not

ANIL GOEL (EXECUTIVE-TAXATION) (29 Points)

15 July 2017

we have paid freight on behalf of customer.RCM applicable or not on me.

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19 Replies

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 15 July 2017

No RCM applicable as freight on transport of goods by road is exempted.

1 Like

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CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 15 July 2017

Originally posted by : Rashmi Gandhi
	No RCM applicable as freight on transport of goods by road is exempted.

Madam, not got your point.....

PLease explain again,what is exempt???

pankaj (Account Manager) (37 Points)
Replied 15 July 2017

RCM is not applicable on transport service by road.

but you have to pay 5% GTA with no ITC credit availbable.

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 15 July 2017

But in my opinion RCM is applicable on GTA(5%) and receiver who is paying tax can claim ITC...

Is it wrong?

pankaj (Account Manager) (37 Points)
Replied 15 July 2017

But in my opinion RCM is applicable on GTA(5%) and receiver who is paying tax can claim ITC... Is it wrong?

Read more at: /forum/details.asp?mod_id=407768&offset=1

presently cant claim of ITC credit by road transport.

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Momin Ali (156 Points)
Replied 15 July 2017

I agree with saloni GTA 5% with no itc and rcm is applicable if value above 5000

PRABIR PAUL (*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.) (1443 Points)
Replied 15 July 2017

RCM is only applicable if trasporter gives you invoice and after that you paid directly to Transporter.

But if any other person paid that charged instead of you i.e. you will reimburse the amount to that other person. Then it still RCM will be applicable in your hand because that is your outstanding amount.....

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Momin Ali (156 Points)
Replied 15 July 2017

SIR CAN I GET THE RCM CREDIT FROM GTA IN CASE OF SERVICE OR GOODS RECEIVED

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 15 July 2017

Wohi to...

That means RCM is applicable on GTA and not on reimbursement of GTA.

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PRABIR PAUL (*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.) (1443 Points)
Replied 15 July 2017

Are nehi saloni,

Ap ak chiz sochiye agar reimbursement me vi RCM nehi dega to Trasporter payment k upar RCM koi nehi dega na receipient dega or nahi supplier dega to a to galat ho geya na.

Ap directly transporter ko payment karo ar samne bale party ko reimburse karo agar transporter ne apko bill diya he to RCM apko hi dena parega......

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CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 15 July 2017

Jo transporter ko payment karega wo hi to RCM pay karega...

Thats the only conclusion. yes or no...

PRABIR PAUL (*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.) (1443 Points)
Replied 15 July 2017

May ak transporter hu. To mayne Saloni Pv.t Ltd. k nam pe apko bill diya lekin apne dusra party ko phone kark bola k bhai Transporter ko tum payment kardo hum(Saloni Pvt. Ltd.) tumko(Party) bad me bo paisa reimburse kar dunga.

To is mamle me bo bala party transporter ko payment to kar diya lekin usne reverse charge pay nehi kiya kiuki bo uska outstanding nehi tha.

Or apne bo paise party ko bad me reimburse kar diya. Lekin transporter ne to apko(Saloni Pvt. Ltd.) service diya na to RCM vi apko pay karna parega.

Or bad me ap(Saloni Pvt. ltd.) us RCM credit lelijiye bas hoge GST ka fanda..... Khatam.......................................................................

1 Like

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 15 July 2017

Ok I rest my case...

Momin Ali (156 Points)
Replied 15 July 2017

SIR plz clarify on GTA (as per govt. list provided it's mention GTA 5% NO ITC credit) as per many gst expert it's means GTA provider are not allowed to take ITC credit not service receiver and service receiver will pay the 5% rcm and credit avail. it's means in each case as per govt. list credit word mention for service provider instead of service receiver.

GTA always give the service but not receiving any service so I don't think so as per list 5% no itc is for service provider. as per my opinion this no itc credit is for service receiver instead of service provider. not only this case in each case. SECTION 9 (3) READ