Car hired for transportation of goods

[Priya Verma]

Our Company is hiring car every month for transportation of their own material from one site to another site. Will RCM be applicable under GTA??.

AI Summary

Reverse Charge Mechanism not applicable for monthly car hire under Goods Transport Agency services; TDS provisions apply. A company inquires about the applicability of Reverse Charge Mechanism (RCM) under Goods Transport Agency (GTA) services when hiring a car monthly for transporting its materials. Responses clarify that cars are not typically used for goods transportation unless they have a yellow number plate, and no consignment note is issued, thus RCM does not apply. The service is categorized under hiring of motor vehicles, subject to TDS provisions. Participants also discuss the nature of the service, concluding it does not fit the GTA classification, and emphasize maintaining professional respect in their exchanges.