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Renting of motor vehicle

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..... Renting of motor vehicle
Query (Issue) Started By: - KARAN VERMA Dated:- 8-1-2020 Last Reply Date:- 9-1-2020 Goods and Services Tax - GST
Got 6 Replies
GST
If employee provide car on rent to company, then whether RCM @5% applicable. Company also reimburse fuel cost and maintenance cost of car as perquisite to employee. Reply By KASTURI SETHI: The Reply: In the situation explained, .....

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..... RCM is not applicable inasmuch as Notification No.22/19-CT(R) stands amended vide Notification No.29/19-CT(R) dated dated 31.12.19. Reply By KARAN VERMA: The Reply: But sir, department will contend why company not paid RCM @ 5%, eventhough both rent and fuel cost reimburse to the employee by company. Reply By KASTURI SETHI: The Reply: Dear Sh.Karan Verma Ji, Re-examined the whole issue. RCM is .....

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..... applicable. Reply By KARAN VERMA: The Reply: Sir, in my view, as per RCM notification not applicable on renting of buses. And if individual provide bus on rent to company, then GST @ 18% will be applicable. Whether i am correct ? Reply By Ganeshan Kalyani: The Reply: Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in t .....

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..... he consideration charged from the service recipient, provided to a body corporate. The above reproduced text from RCM notification indicates that there is no difference between car and bus. The term is motor vehicle. Hence, even for bus RCM is applicable. Reply By KASTURI SETHI: The Reply: Yes. Bus is also a motor vehicle. The querist must see definition of motor vehicle as per Motor Vehicle A .....

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..... ct as well as legal dictionary.
Discussion Forum - Knowledge Sharing .....

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