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RCM IS APPLICABLE ON MATHADI BILL IN MAHARASHTRA?
RCM IS APPLICABLE ON MATHADI BILL IN MAHARASHTRA
17 Mar 2017 
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Reverse charge on manpower supply: RCM applies to Mathadi services when provider is individual and recipient is corporate.
Whether the reverse charge mechanism applies to Mathadi bills turns on classification of the activity as a supply of manpower. Mathadi services encompass carrying loads and related tasks such as loading, unloading, stacking, weighing and measuring. When such activities constitute supply of manpower - i.e., provision of persons to work under the recipient's superintendence or control - and the provider is an individual while the recipient is a body corporate, reverse charge applies under the central law and the service should be treated accordingly. (AI Summary)
Whether the reverse charge mechanism applies to Mathadi bills turns on classification of the activity as a supply of manpower. Mathadi services encompass carrying loads and related tasks such as loading, unloading, stacking, weighing and measuring. When such activities constitute supply of manpower - i.e., provision of persons to work under the recipient's superintendence or control - and the provider is an individual while the recipient is a body corporate, reverse charge applies under the central law and the service should be treated accordingly. (AI Summary)