RCM on GTA

[VIGNESH]

Sir.Kindly clarrify, One of my client hires vehicle on regular basis From Mr.A to deliver his goods, Mr.A issues a bill just specifying distance covered with place of delivery and takes his charges and collects his charges monthly and my client has deducted TDS will it be covered under GTA and RCM attracts? or Hire Charges where RCM not apply!

AI Summary

Clarification on whether vehicle hire for goods delivery by Mr. A is subject to RCM under Goods Transport Agency rules. A client regularly hires a vehicle from Mr. A for goods delivery, with Mr. A issuing a bill based on distance covered. The client deducts TDS, and there is a query about whether this falls under Goods Transport Agency (GTA) and if Reverse Charge Mechanism (RCM) applies. Three responses were provided: one states Mr. A is a Goods Transport Operator (GTO), not a GTA, so RCM doesn't apply; another suggests it's hire charges since Mr. A doesn't assume responsibility for the goods, thus not liable to RCM; the third advises ensuring a consignment note is issued to determine if it's a GTA service subject to RCM.