GST -Rcm - Rent a Cab

Dear All

 

RCM - Rent - Cab includes hiring of Buses:

 

• If rent a cab operator is a (proprietor/partnership firm) and he is billing to a (proprietor/partnership) or any other non-corporate entity, then  he would  continue to charge 5% GST in his bill. RCM provisions do not apply in this scenario.

 

• In case rent a cab operator (being proprietor or partnership firm) adds 5% GST in his bill to a (private limited company or public limited company), the company need not reimburse GST portion to the cab operator.  Instead the company should pay 5% GST on their own as RCM liability.

 

• In case  rent a cab operator is not registered in GST, the private limited company or public limited company in receipt of cab services should still pay 5% GST under RCM

Regards,
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CA.C.V.PAWAR
PATIL DAWARE GIRASE PAWAR & ASSOCIATES

CHARTERED ACCOUNTANTS

0253-2319641. M-9423961209

INDIAN CA - NURTURED IN INDIA, GROOMED FOR THE WORLD