RCM on fitness certificate

[KARAN VERMA]

Sir, whether RCM required to be paid on motor vehicle fitness certificate obtained from State Govt.

[KASTURI SETHI]

RCM is not applicable if motor vehicle is meant for transport of goods or passengers. The motor vehicles for above said purposes fall under the exclusion clause at serial no.5(2)(iii) of Notification No.13/17-CT(R) dated 28.6.17 aa amended up to 31.12.19

[Shilpi Jain]

There is an exemption available for

Services provided by the Central Government, State Government, Union territory or local authority by way of-

(a) registration required under any law for the time being in force;

(b) testing,calibration, safety check or certification relating to protection or safety of workers, consumers or publicat large, including fire license, required under any law for the time being in force.

If the fitness certificate can be said to be for the purpose of safety check relating to protection of public at large, it can be said not to be liable under RCM also.

[DR.MARIAPPAN GOVINDARAJAN]

RCM is not applicable.

AI Summary

Reverse Charge Mechanism not payable on motor vehicle fitness certificates when serving transport safety or government certification.
RCM does not apply to motor vehicle fitness certificates where the vehicle is used for transport of goods or passengers, as such services are excluded under the relevant notification; alternatively, fitness certificates that function as government-provided safety checks, testing, calibration or certification for protection of the public are exempt from RCM when rendered by government authorities.