Gst on immovable property have to be treated as bus income ?
This query is : Resolved
sagar kaurani
(Querist)
08 April 2018
Sir,
my client is into trading proprietory business and has given a commercial property which is on his personal name on rent and he has charged GST on the rental income.
however he has shown rental income under the indirect income in business p&l account . which increases the business NP.
he had done so , to settle the liability of GST arising out of rental income against business income as he had raised invoice under the same GST number of the proprietor.
though it is income from HP , how can we show it as business income ?
my client is into trading proprietory business and has given a commercial property which is on his personal name on rent and he has charged GST on the rental income.
however he has shown rental income under the indirect income in business p&l account . which increases the business NP.
he had done so , to settle the liability of GST arising out of rental income against business income as he had raised invoice under the same GST number of the proprietor.
though it is income from HP , how can we show it as business income ?
CA R SEETHARAMAN
(Expert)
08 April 2018
It's a commercial property hence it can be shown as business income.
sagar kaurani
(Querist)
08 April 2018
the business property and the commercial property is situated at different place in the same state .
my client is running business from his own property
he has another commercial property ( shop) given on Rent.
still it would come under Business Income ?
my client is running business from his own property
he has another commercial property ( shop) given on Rent.
still it would come under Business Income ?
CA Rashmi Gandhi
(Expert)
08 April 2018
Yes even place is different both shown under business income.
CA R SEETHARAMAN
(Expert)
08 April 2018
Agreed with the above reply.
sagar kaurani
(Querist)
08 April 2018
as per the income tax ..? If the shop is given on rent it would be chargeable to tax under INCOME FROM HOUSE PROPERTY ??
08 April 2018
Please read this article you can get some clarity about the rental income is under IFHP or PGBP...
https://taxguru.in/income-tax/rental-income-house-property-business-income.html
Message likes :
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30 October 2026
Charging GST on the rent does not change the income-tax head: rent from a shop owned by the proprietor is taxable as income from house property (with the 30% standard deduction) unless letting property is itself his business, and this continues under the Income-tax Act 2025; the GST collected is a liability, not income.
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