Meaning of 'BODY CORPORATE' FOR RCM ?

[abbas mukhi]

Dear Experts,

What is present definition of 'BODY CORPORATE' for RCM Purpose ??

Whether 'AUTONOMEOUS BODY' incorporated under special act of parliament is body corporate for RCM purpose ?

[Rajagopalan Ranganathan]

Sir,

According to Section 2 (11) of Compaznies Act, 2013,'body corporate means "“body corporate” or “corporation” includes a company incorporated outside
India, but does not include-
(i) a co-operative society registered under any law relating to co-operative societies; and
(ii) any other body corporate (not being a company as defined in this Act), which the Central Government may, by notification, specify in this behalf.

Since body corporate is not defined in Finance Act, 1994 definition of body corporate provided in Copmpaniews Act, 2013 can be adopted.

[Rajagopalan Ranganathan]

Sir,

The term "autonomous body " denotes a self governing body, independent, or subject to its own laws. If autonomous body or institution is a company, it is regulated by the company law. If it is a society, it is governed by the law on registration of societies. But in both the cases, its own board of directors can specify the rules of business for the body/institution. For simplicity sake, normally the boards of such bodies or institutions adopt the rules of the concerned Government or department under which they work, but only by passing of a resolution to that effect.

[KASTURI SETHI]

Autonomous body is not body corporate. For e.g. Punjab University, Education Board, Housing Board, PGI etc. are autonomous bodies and they are not body corporates. I have given examples in support of reply Sh. R.Ranganathan, Sir.

[abbas mukhi]

THANK YOU....

AI Summary

Autonomous bodies under special acts may not qualify as 'body corporate' for RCM as per Companies Act, 2013. A user inquired about the definition of 'body corporate' for Reverse Charge Mechanism (RCM) purposes and whether an autonomous body incorporated under a special act of parliament qualifies as a body corporate. An expert responded by referencing the Companies Act, 2013, which defines 'body corporate' and excludes cooperative societies and other specified entities. Another expert explained that autonomous bodies are self-governing and may not be considered body corporates, citing examples like universities and boards. The discussion clarified that autonomous bodies typically do not fall under the definition of body corporates for RCM purposes.