Applicability on Reimbursement to West Centrail Railway(Staff salary), Goods and Services Tax - GST

[Prem Choudhary]

Dear Expert

please advice RCM applicability on reimbursement to Railway towards staff appointed in our railway siding. whethse it is forwards service or RCM ?

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Posts / Replies

[KASTURI SETHI]

An extract from FAQ on RCM

25

Whether reimbursement of expenses to staff comes under RCM?

Re-imbursement is an expense in the course or furtherance of business and if the same is against a taxable supply taken from an unregistered supplier, RCM will apply.

[Prem Choudhary]

sir

in our case the reimbursement of salary to the railway staff will attract RCM under Serial no.5 of Notification -13/2017 of Central tax (Rate).

[KASTURI SETHI]

In my view, it is not covered under RCM as transportation of goods or passengers fall in the exclusion clause of Serial no 5 of notification No.13/ 17-CT(Rate) dated 28.6.17 as amended.

[CASusheel Gupta]

Please see whether it can fall in exclusion clause of entry no. 5(2)(i) - Agency service.

If so, shall be subject to forward charge.

CA Susheel Gupta

9811004443

[Prem Choudhary]

Sir

For Agency services: The relationship b/w two persons must be principal and Agent for establish Agency Services. However in our case railway is not our agent, mearly transporter,