TaxTMI 
TaxTMI 
If employee provide car on rent to company, then whether RCM @5% applicable.
Company also reimburse fuel cost and maintenance cost of car as perquisite to employee.
Renting of motor vehicle
08 Jan 2020 
6 Replies 
1223 Views Asked by
Reverse charge mechanism on motor vehicle rentals can apply where fuel costs are included and supplied to a body corporate.
RCM under GST on renting of motor vehicles depends on whether the service is supplied to a body corporate and whether the cost of fuel is included in the consideration; the notification language treats "motor vehicle" generically to include cars and buses, and reimbursements as perquisites are factual elements relevant to determining RCM liability. (AI Summary)
RCM under GST on renting of motor vehicles depends on whether the service is supplied to a body corporate and whether the cost of fuel is included in the consideration; the notification language treats "motor vehicle" generically to include cars and buses, and reimbursements as perquisites are factual elements relevant to determining RCM liability. (AI Summary)