TaxTMI 
TaxTMI 
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?
RCM % for Partnership FIrm
24 Dec 2019 
7 Replies 
2566 Views Asked by
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. (AI Summary)
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. (AI Summary)