Applicability of gst and it on rental income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2018 Hello!
My query is whether an assesse is required to pay income tax on house property and GST both on rental income received.

Thank You.

CMA MALHAR BEHERA

CMA MALHAR BEHERA (Expert)
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08 May 2018 As per Schedule 2 of the GST Act, renting out of an immovable property would be treated as a supply of services. It includes any property is leased out (or let out) including a commercial, industrial, or residential property for business.
The TDS is applicable both on residential and commercial properties. It will be deducted by all lessees except individuals & HUFs (unless the individual or HUF required to get his accounts audited under Sec 44AB of the Income Tax Act.)

For an individual or a HUF, who are not required to get their accounts audited, the Budget 2017 has introduced a special provision. These individuals and HUF will have to deduct tax at source @5% at the end of the year or the end of the tenancy period if the monthly rent exceeds Rs. 50,000 .
When the property is leased-out, the lessee of the property is required to deduct TDS. Under GST, there will no GST component on TDS.

Guest

Guest (Expert)

08 May 2018 Yes. Income tax is paid out of pocket. And GST is collected from the tenant and paid to Govt.