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

Reverse charge on vehicle rental not triggered where partnership uses forward charge unless it opts for the composition scheme.
A partnership firm providing cab services can continue to charge GST under the forward charge mechanism on invoices to individual and corporate customers; reverse charge applies only if the firm has opted for the reduced composition route. Notification No.13/2017-CGST is cited: renting of motor vehicles to a body corporate is the relevant service, the recipient is a body corporate in the taxable territory, and the service provider class specified (any person other than a body corporate) who pays central tax at the reduced rate faces restrictions on input tax credit.