TaxTMI 
TaxTMI 
Dear Expert
please advice RCM applicability on reimbursement to Railway towards staff appointed in our railway siding. whethse it is forwards service or RCM ?
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Applicability on Reimbursement to West Centrail Railway(Staff salary)
15 Mar 2019 
5 Replies 
1642 Views Asked by
Reverse Charge Mechanism on salary reimbursements hinges on transportation exclusion and agency versus principal characterization.
Whether reimbursement of salaries to railway staff at a private siding falls under RCM depends on whether the reimbursement is for a taxable supply from an unregistered supplier, whether the service is excluded as transportation of goods or passengers, and whether the arrangement constitutes agency services, in which case forward charge would apply. (AI Summary)
Whether reimbursement of salaries to railway staff at a private siding falls under RCM depends on whether the reimbursement is for a taxable supply from an unregistered supplier, whether the service is excluded as transportation of goods or passengers, and whether the arrangement constitutes agency services, in which case forward charge would apply. (AI Summary)