RCM on security personnel

[KARAN VERMA]

Sir

My individual contractor provide manpower service to limited company-

1. Staff in accounts and HR department

2. Labour for shifting of material

3. Security guard in the factory and office premises.

My question is whether RCM applicable on all above three type of manpower supply or only on security guard service. Kindly provide your opinion.

[KASTURI SETHI]

Only Security Service is under RCM under GST

[Shilpi Jain]

Right sir. The RCM entry states security service by way of supply of security personnel would be liable under RCM.

So if you are not a body corporate then the supply of security person alone would be liable under RCM.

[KASTURI SETHI]

Yes. The condition of 'receiver must be body corporate' has been in force since Service Tax era.

[Ganeshan Kalyani]

Yes, only security service is covered under RCM subject to a condition that the recipient must be a body corporate and provide must be other than body corporate.

AI Summary

Reverse charge on security personnel services applies where the recipient is a body corporate; other manpower supplies excluded. Reverse charge applies only to security services supplied by way of providing security personnel; other manpower supplies (accounts/HR staff, shifting labour) are excluded. The mechanism applies only where the recipient is a body corporate and the provider is other than a body corporate, a condition retained from the Service Tax era.