10. Amount on which Sandeep is required to pay tax under RCM is:
Options
A` 0
B` 35,000
C` 50,000
D` 85,000
(2 Marks)
For any discrepancies in this question, email contact@cadada.in
Taxation - Income TaxQuestion 5606 of 146
All Questions Correct Answer
✅ Option A — ` 0
All Options:
- A` 0 ✓
- B` 35,000
- C` 50,000
- D` 85,000 (2 Marks)
Ad
Detailed Solution & Explanation
Correct Answer: Option **A**
**Explanation:**
To determine the tax payable under the Reverse Charge Mechanism (RCM), let us evaluate the inward services received by Sandeep:
1. **Hiring of a bus from Ravi:** - Hired a bus from Ravi (registered in Maharashtra) for ₹ 50,000. - Under Section 9(3) of the CGST Act, 2017, RCM on renting of passenger motor vehicles applies only when the supplier is a non-body corporate and the recipient is a body corporate. - Since Sandeep is an individual (not a body corporate), RCM provisions are not applicable here. Tax is payable under forward charge by the supplier, Ravi.
2. **Security services from Protect You Security Limited:** - Security services were received for ₹ 35,000. - Under Section 9(3) of the CGST Act, 2017, RCM on security services (supply of security personnel) is applicable only when the supplier is any person other than a body corporate and the recipient is a registered person. - Since the supplier is "Protect You Security Limited" (a body corporate), RCM is not applicable. The tax is payable under forward charge by the supplier.
3. **Conclusion:** As none of the inward services fall under RCM for Sandeep, the amount on which he is required to pay tax under RCM is ₹ 0. Hence, **Option A** is the correct answer.
1. **Hiring of a bus from Ravi:** - Hired a bus from Ravi (registered in Maharashtra) for ₹ 50,000. - Under Section 9(3) of the CGST Act, 2017, RCM on renting of passenger motor vehicles applies only when the supplier is a non-body corporate and the recipient is a body corporate. - Since Sandeep is an individual (not a body corporate), RCM provisions are not applicable here. Tax is payable under forward charge by the supplier, Ravi.
2. **Security services from Protect You Security Limited:** - Security services were received for ₹ 35,000. - Under Section 9(3) of the CGST Act, 2017, RCM on security services (supply of security personnel) is applicable only when the supplier is any person other than a body corporate and the recipient is a registered person. - Since the supplier is "Protect You Security Limited" (a body corporate), RCM is not applicable. The tax is payable under forward charge by the supplier.
3. **Conclusion:** As none of the inward services fall under RCM for Sandeep, the amount on which he is required to pay tax under RCM is ₹ 0. Hence, **Option A** is the correct answer.
More Questions from Taxation - Income Tax
On solving the inequalities , , , , we get the following solution:
An employer recruits experienced and fresh workmen for his under the condition that he cannot employ more than people and can be related by the inequality.
The solution set of the equations and is
On solving the inequalities; we get , ,
Solve for of the inequalities where
The common region in the graph of the inequalities , , is
Ready to Master Taxation - Income Tax?
Practice all 146 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.
Start Practicing — It's Free