Reverse Charge Mechanism on renting of passenger vehicles: recipient liable where supplier does not charge tax at higher rate. Reverse charge applies to renting of passenger motor vehicles with fuel included when the supplier is non corporate, does not issue an invoice charging tax at the higher rate, and supplies to a body corporate; if the supplier charges tax at the higher rate the recipient is not liable under RCM, otherwise the recipient must pay tax under RCM. The amendment is clarificatory and applies retrospectively to avoid undermining the notification's operability.
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Reverse Charge Mechanism on renting of passenger vehicles: recipient liable where supplier does not charge tax at higher rate.
Reverse charge applies to renting of passenger motor vehicles with fuel included when the supplier is non corporate, does not issue an invoice charging tax at the higher rate, and supplies to a body corporate; if the supplier charges tax at the higher rate the recipient is not liable under RCM, otherwise the recipient must pay tax under RCM. The amendment is clarificatory and applies retrospectively to avoid undermining the notification's operability.
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