What is rate of RCM in case of renting of motor vehicle (7 seater car) provided to Registered company by a registered proprietorship firm i.e 12% or 5% under RCM. Secondly whether this RCM input is available to the company as it does not deal in motor vehicles, so whether is comes under blocked credit u/s 17(5)

Reply- As per Notification No.22/2019–Central Tax (Rate)] Dated: 30th September, 2019 Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient, provided to a body corporate is payable under RCM by a body corporate located in the taxable territory if supplier of service is any person, other than a body corporate who supplies the service to a body corporate and does not issue an invoice charging central tax at the rate of 6 per cent. to the service recipient.

Thus tax will be payable @5% under RCM. As per 17(5)(B) Input in respect of renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein is blocked Thus Input will not be available to body corporate