our salesman goes to sales & marketing work in their area.
frequently they used rental hire car.
Hire car expenses they claim to company & get amount.
some hire car Bill's in the name of company & some hire car Bill's in the name of salesman name.
we accounted the expenses conveyance / Travelling expenses.
can we are liable to pay GST RCM on rental car services.Please guide.
9 Replies
sabyasachi mukherjee
(27574 Points)
Replied 14 September 2022
Why reverse charge is spplicable here?
Rajendra Prasad
(Employee Private)
(1867 Points)
Replied 14 September 2022
If you are a Body Corporate and cost of fuel is included in charges and service provider has not issued tax invoice with 12% GST , then you are liable to pay GST under RCM.
Rajkumar Gutti
(591 Points)
Replied 14 September 2022
Yes we are a body corporate ,cost of fuel is included in charges ,service provider has not issed tax invoice , but some invoice is in the name of sales man name , some invoice is in the name of our corporate company name.pl.guide
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 15 September 2022
As per Notification 13/2017 under S.no. 15, Any person providing renting of Motor vehicle where the cost of fuel included to the Body Corporate, the Recipient is liable to do RCM.
Note : Any person can be URD or Who is not paying GST @ 12% on FC.
Note : Any person can be URD or Who is not paying GST @ 12% on FC.
Rajkumar Gutti
(591 Points)
Replied 15 September 2022
What about rental car bill is in the name of sales person , can liable to pay RCM.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 15 September 2022
RCM is done by Recepient of services & in this case the ultimate recipient is company who is paying for it.
Manish
(CA)
(1172 Points)
Replied 17 September 2022
| Originally posted by : Pankaj Rawat | ||
 |
RCM is done by Recipient of services & in this case the ultimate recipient is company who is paying for it. |  |
Sir, is the reasoning behind this because u/s 2(93) of CGST Act, recipient includes his agent; and here salesmen are treated as agents of the company?
Rajkumar Gutti
(591 Points)
Replied 27 September 2022
Employee use this rent car in his personal capacity for use to company sales work & this expenses reimbursed by company .Is this supply of service consider u/ s 7 of cgst act as employ ee - employeer relationship & does not treated as supply or consider supply of service as agent of company u/s 2(93) of chat act.
Whether we pay RCM by taking reference of sec.2 (93) or not to pay by taking reference of sec.7 as employee - employer relationship.
Please give your valuable opinion.
Whether we pay RCM by taking reference of sec.2 (93) or not to pay by taking reference of sec.7 as employee - employer relationship.
Please give your valuable opinion.
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