RCM Applicability on reimbursement to employee

[Ashiesh Prremji]

Dear Sir,

Please suggest whether Import of Service for training purpose of employee will liable for RCM for employer?

Invoice is in the name of employee, will such reimbursement come in employee-employer relationship?

Thanks for your valuable suggestion!

AI Summary

Experts Debate GST RCM Applicability on Reimbursed Training Expenses; Key Factors: Consumption and Documentation An individual queried about the applicability of Reverse Charge Mechanism (RCM) under GST for the reimbursement of training expenses incurred by an employee. The training service was imported, with the invoice in the employee's name, and later reimbursed by the employer. Several experts responded, emphasizing the need for more details to provide accurate advice. One expert concluded that RCM is not applicable as the service was consumed personally by the employee, not under the employer's direction. Another expert noted that if the company records the reimbursement as a business expense, GST on RCM may apply. The discussion highlighted differing interpretations and the importance of proper classification and documentation.