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RCM on Cab service

SHREYANSH (Sr Account Officer) (28 Points)

28 December 2019

If cab service provider is other than body corporate and receptient is employee and he reimburse in company "A". So whether RCM applicable on Company "A"? As company booking expenses under Head of CAB Expenses?

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5 Replies

Alfhad Chauhan (4 Points)
Replied 28 December 2019

The GST component is always payable by ECOM u/s 9(5) pf CGST ACT 2017, if transit is done through Motor cab, radio Taxi, Maxi Cab and motor cycle.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 29 December 2019

Yes , it means the Bill is raised in the name of Company & Moreover the services being availed by Co. Employee which is book by company under Expenses.

Condition inserted in Notification 22/2019 CT(R) RCM Applicable in case of Cab Services if :

Supplier of Services is Proprietor & has opted scheme of 5 % FC without ITC.
Receptient is Body corporate.

SHREYANSH (Sr Account Officer) (28 Points)
Replied 29 December 2019

Cab service provider is other than body corporate and Cab Bill is in name of employee and he claim for reimbursement in Company"A". Whether RCM applicable on Company"A"?

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 30 December 2019

If it is in employment contract & is part & parcel of CTC should not be liable for GST & in term of schedule III same is Neither supply of Goods Nor Supply of Services .

hence there is no question of RCM Applicability.

CA Arun Tiwari (Partner) (5955 Points)
Replied 02 January 2020

No , RCM provisions will not be applicable .It is because Although its main expenses in the name of company, however ,the recipient who is availing the service is Individual .So the basic consumption is seen .

Accordingly , Cab service provider will be liable to pay tax .