TaxTMI 
TaxTMI 
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??.
Car hired for transportation of goods
24 Feb 2017 
13 Replies 
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Guest 
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. (AI Summary)
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. (AI Summary)