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Gst on rent

18 July 2017

who will pay the service/ Gst tax on rented premises for commercial use licensee or licensor .
if not mentioned clearly in leave and license agreement....

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14 Replies

Lava.p (student) (164 Points)
Replied 18 July 2017

in case of leasing where the building is provided for commercial use by unregistered person to a registered person the company has pay GST on RCM basis !!!!

Rakesh Verma (41 Points)
Replied 18 July 2017

RCM ..how it works

RAJA P M ("Do the Right Thing...!!!") (127495 Points)
Replied 18 July 2017

@ Rajesh... (RCM ..how it works)
For Ex:
If A Good / Service are 18% tax Under GST. You receive that Goods/Service Value is Rs. 100000.
Above Values Tax is Rs. 18000.

You ll be receiving it from Registered Dealer then he collect Tax from you and pay to govt. Govt get their kazhana Rs. 18000/-
If you Receive above said items from URD as same value. He can't collect Tax from you and can't deposit/pay to govt.
In the case Govt loss the tax. You purchase from URD then Govt ll be loss So, You pay the loss of Amount. That is RCM....
Are you Understand....?!

1 Like

Rakesh Verma (41 Points)
Replied 18 July 2017

in this case I have to generate bill and collect gst on rent from tenents ...

RAJA P M ("Do the Right Thing...!!!") (127495 Points)
Replied 19 July 2017

Mr. Rakesh.,
You are Tenant or Landlord....?

Rakesh Verma (41 Points)
Replied 19 July 2017

I am landlord

RAJA P M ("Do the Right Thing...!!!") (127495 Points)
Replied 19 July 2017

Good...
If you are registered then you can give invoice with taxable to tenant. The tenant is RD then he ll be take ITC....

1 Like

Rakesh Verma (41 Points)
Replied 20 July 2017

The tenant is RD then he ll be take ITC.... means

Rakesh Verma (41 Points)
Replied 20 July 2017

what is RD and ITC

RAJA P M ("Do the Right Thing...!!!") (127495 Points)
Replied 20 July 2017

RD - Register Dealer under GST.
ITC - Input Tax Credit...

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RAJA P M ("Do the Right Thing...!!!") (127495 Points)
Replied 20 July 2017

(in this case I have to generate bill and collect gst on rent from tenents ...)
If you are Registered under GST then you can generate bill and collect GST on rent.
Then you ll be pay the Taxes to Dept

1 Like