RCM % for Partnership FIrm

[Javed Siddiqui]

Hello Sir,

Can Partnership firm which provide cab services to Corporate Body charge 12% Under RCM ?

as it is also engaged in providing rental services to individual customer as well so how we have to take ITC under this regim?

[Ganeshan Kalyani]

You can continue paying GST under forward charge mechanism. That is, you can charge GST on the invoices raised by you on your customer both individual and corporate.

[Javed Siddiqui]

Thank you sir,

As we are partnership firm, we can continue with Forward Charge GST to our Corporate Customer right ?

Thanks

Javed

[Mahadev R]

Yes Sir. Partnership firm could continue to charge 12% in FCM. The provision of RCM applicable only when such firm has opted for 5%. Extract of entry in notification no.13/2017-CGST is reproduced below:

Service

Services provided by way of renting of a motor vehicle provided to a body corporate.

Service provider

Any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business

Recipient of service

Any body corporate located in the taxable territory.]

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of experts.

[KASTURI SETHI]

I support the views of the experts.

[harish rajendran]

Without a Partnership Deed, or if the Partnership Deed is quiet on a specific point, the accompanying arrangements of organization Act, 1932 will be pertinent: Profit and misfortunes are to be shared similarly independent of their capital commitment. No enthusiasm on capital will be permitted to the accomplices. Get to know more: Partnership deed format

[KASTURI SETHI]

Dear Harish Ji,

How your post is relevant to the query ? Will you please clarify ?

AI Summary

Cab Service Firm Advised to Use Forward Charge Mechanism for GST; Reverse Charge Applies Only at 5% Rate A partnership firm providing cab services to corporate clients inquired about charging 12% GST under the Reverse Charge Mechanism (RCM) while also offering rental services to individual customers. Experts advised that the firm should continue using the Forward Charge Mechanism (FCM), charging GST on invoices to both individual and corporate customers. The RCM applies only if the firm opts for a 5% rate. Additional comments included support for the expert views and a note on partnership deed relevance, which was questioned for its pertinence to the original query.