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RCM Query On Repairing,Maintenence & Security Charges

amlu___ 002 (CA Article Trainee) (84 Points)

18 March 2020

My client is doing a business of storage & warehousing services, where they had received service and goods for repair and maintainence from URD dealer. And the other point is security charges for supervision of godown charges are also received from URD dealer.

Whether i have to pay RCM on Repairing and maintainence, & Security Charges?

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5 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 18 March 2020

Rcm not applicable for the repairs and maintenance charges...

But,

Elobrate the security charges..!

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CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 18 March 2020

Agreed with Raja sir.

RCM applicable on security personnel services from 1st Jan 2019 u/s 9(3) CGST & 5(3) IGST laws. (rate of tax 18%).

Ensure self invoice and payment vouchers are being raised appropriately.

amlu___ 002 (CA Article Trainee) (84 Points)
Replied 18 March 2020

Security Charges including Supervision , Cleaning Labour Supply for warehouse

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 18 March 2020

Dear Amlu,

Notif. 29/2018-CT(R) - RCM applicable on - Security services (services provided by way of supply of security personnel).

RCM is applicable only on security services not on housekeeping activity (cleaning labour), suggest to obtain separate invoices, to ensure RCM is being discharged only on the balance.

For previous invoices, as there is an ambiguity, consider paying RCM and claiming ITC against the same. Where ITC is not eligible, request vendor to provide separate invoices for prior period.