TaxTMI 
TaxTMI 
RCM on freight paid to individual transporter whose amount is less than 5000 a day?
RCM on freight paid to individual transporter whose amount is less than 5000 a day?
29 Aug 2017 
2 Replies 
5031 Views Asked by
Reverse charge on freight may apply even for small daily payments, unless non GTA individual transporter services are exempt.
Reverse charge for freight payments applies despite low daily amounts when the supply falls under the reverse charge mechanism; however, transportation services provided by individual vehicle owners who do not qualify as Goods Transport Agencies may be exempt under the rate notification exclusion and thus not subject to reverse charge. (AI Summary)
Reverse charge for freight payments applies despite low daily amounts when the supply falls under the reverse charge mechanism; however, transportation services provided by individual vehicle owners who do not qualify as Goods Transport Agencies may be exempt under the rate notification exclusion and thus not subject to reverse charge. (AI Summary)