Is RCM applicable in case of food expenses incurred by employees. These expenses are reimbursed by the company
9 Replies
Hamza Ansari
(Accountant)
(217 Points)
Replied 10 August 2017
NO. RCM is not applicable on food expenses.
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 10 August 2017
Its a transaction between employer and employee and the amount has been reimbursed, no RCM applicable.
SANDEEP JAIN
(Tax Consultant)
(487 Points)
Replied 10 August 2017
what if food expenses incurred by employee are from URD
and 5000 limit has already been utilised by the firm
and 5000 limit has already been utilised by the firm
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 11 August 2017
Here the employee is not providing any service but have received service on behalf of company. The company will show the payment made by employees as expenses of its own. In this the company is showing that it has received services or goods through employee therefore RCM will be applicable.
Tara Khandelwal
(Student CA Final )
(298 Points)
Replied 11 August 2017
It will be covered under Staff Amenities and so gst will not be applicable. Correct me if I am wrong
jayesh
(accountant)
(361 Points)
Replied 11 August 2017
company paid employee for traveling exp (traveling for company purpose) like food, ticket, auto charge in this case gst is applicable
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 11 August 2017
Again its a transaction b/w employer and employee. No GST
GST will only be applicable if the employee presents bill in company name with company GSTIN on it.
Priya Balaaji
(Manager Finance)
(23 Points)
Replied 03 April 2019
Hi,
The company is providing food to all its employees, and treat it as staff welfare. But did not recover it from employees. The food supplier is an unregistered dealer. Do the company need to pay RCM. If the company need to pay RCM does it can avail ITC on that??
Kindly clarify..
Kindly
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 04 April 2019
In your case the transaction does not attract RCM since RCM u/s 9(4) is applicable on specified persons only. Govt has not notified any person yet.
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