Car hired for transportation of goods

[Guest]

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??.

[Ganeshan Kalyani]

How can goods be transported in a car ?

[Kuldeep Nain]

Dear

As per GTA service definition, a builty or consignment note is issued by GTA.

In this case no such evidence exists. Hence NO RCM will apply in this case.

HIRING of Motor Vehicle service orovisions will apply & TDS provisions will also apply.

[KASTURI SETHI]

If it is so, it will be covered under the erstwhile category of Supply of tangible goods/right to use of tangible goods. (Now other than negative list).

[Ganeshan Kalyani]

Sir in that case reverse charge would not apply. Thanks.

[YAGAY andSUN]

Cars are not meant for carrying of goods until unless they bear Yellow number plate. Otherwise, it is voilation of the provisions of Motor Vehicle Act. Further, cab owner do not issue bilty. Hence, no reverse charge would be application on this transaction.

[KASTURI SETHI]

Yes. Sh.Ganeshan Kalyani Ji. In that situation neither RCM nor abatement is admissible.

[YAGAY andSUN]

Agreed with you, Respected Kasturi Sir ji.

You are simply amazing .............. and we are learning from you..

[KASTURI SETHI]

Dear Sir,. No sarcasm no lambasting pl. I have great regards for you. I am saying from the core of my heart. Really I learn from you. I am 65 !! I think u would my age. ? Thanks & Regards

K. L. SETHI

[YAGAY andSUN]

Respected Kasturi Sir,

From the core of my heart, I had praised you. But it was meant otherwise. Now, from today onward, we will not usher a single word of Praise on TMI for our expert fellows. However, we all are learners, it does not matter that whether we are of 23 years or of 35 years or of 65 years.

Even, we want to clarify it and we had called you up. But you have not picked up your phone.

Thanks & Regards,

YAGAY and SUN

[KASTURI SETHI]

Dear Sirs, Let us relish cordial relationship. I do not want to earn displeasure of any expert. Life is meant for enjoyment.

[YAGAY andSUN]

Dear Sir,

It all give and take relation in profession but nothing personal.

Regards,

YAGAY and SUN

[KASTURI SETHI]

Right Sir. Exchange Theory !

[Himansu Sekhar]

I have a view which may be considered

Main component of the service is shifting of the goods by the service provider and the wordtransportation does not fit here and the distance of the shifting is also as per vasrtious judgements decide the GTA service classification. In my view all the ingredients of gta service are lacking . it is definitely a service and not a GTA service. No liability rests with the service receiver.

AI Summary

Reverse charge under GTA unlikely when cars hired for company goods transport; motor vehicle hire rules and TDS apply. Reverse charge under GTA is not attracted where hiring a car to move a company's own materials lacks GTA features such as a consignment note and commercial vehicle use. Such transactions should be treated as hiring of motor vehicle service, with applicable tax withholding obligations, and neither GTA reverse charge nor abatement should apply if the essential elements of a GTA supply are absent.