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

Body corporate definition: adopt company-law definition for reverse charge; autonomous bodies are not automatically body corporates.
The Finance Act lacks a definition of body corporate, so the company-law definition may be adopted for reverse charge purposes: company-law treats bodies corporate (including foreign companies) with specified exclusions and government-notified exceptions. An "autonomous body" is a self-governing institution that may be a company, society, or statutory entity; it is not automatically a body corporate-classification for reverse charge depends on the entity's legal form and applicable regulatory regime.