Update on RCM - Vehicle Hire Charges
Kalpesh P (1 Points)
15 October 2019
Required help to understand changes in RCM on Vehicle hire charges
3 Replies
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 16 October 2019
No more specific changes. If Service received from GTA then Rcm applicable as per quoted limits...
Sunil
(CA)
(185 Points)
Replied 16 October 2019
RCM is applicable on vehicle hire charges w.e.f 01st October, 2019 for any body corporate located in the taxable territory if such services is received from any person other than a body corporate, paying central tax at the rate of 5% on renting of motor vehicles with input tax credit only of input service in the same line of business.
So vehicle hire charges incurred by a company will be liable to RCM, if the service is taken for any person other than another body corporate in the similar business charging GST @ 5%.
Please note “Body Corporate” has the same meaning as assigned to it in clause (11) of section 2 of the Companies Act, 2013.
Please read notification 22/2019 Central Tax Rate notification.
Prachi Bansal
(3129 Points)
Replied 20 March 2021
When a service is placed under RCM, can the supplier charge any tax?
Recent Topics
- GST on consultancy
- Linking adhaar to UAN without employer
- WHETHER ITC REVERSAL TH. GSTR 3B OR DRC03
- Advance Tax For Freelancers
- Is fvu 8.8 version available ?
- Interest and penalty on advance tax shortfall
- Joint Account with 3 legal heirs.......
- TCS adjustment
- GST audit and scrutiny
- GSTR9 Table 8 - 8A and 8B difference is 4D(1). in
Related Threads
CAclubindia
