LEASING BUILDING

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This query is : Resolved

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This discussion clarifies whether GST applies to leasing a commercial building for three years when both parties have GST numbers. It confirms that GST is applicable on the lease amount. The query also seeks to understand if GST on the entire lease amount (Rs 5,00,000 at 18%) is payable upfront or spread over the lease term, with a confirmation that GST is indeed payable on the lease amount.

raghavendra b

raghavendra b (Querist)
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30 January 2021 DEAR SIR,

IS GST APPLICABLE ON LEASING COMMERCIAL BUILDING FOR THREE YEARS. ONE MY CLIENT IS LEASE HIS BUILDING FOR 5,00,000/-. BOTH OWNER AND MY CLIENT ARE HAVING GST NO. HOW TO PAY GST ON LEASE AMOUNT WHETHER GST ON ENTIRE LEASE AMOUNT MEANS 18% RS 90000/- WHEN HE RECEIVED THE AMOUNT. IT IS VALID ONCE PAID GST IS ON LEASE TERM.

PLEASE CLARIFY ME

REGARDS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 January 2021 GST applicable on leasing of commercial building. If entire 5 lacs is received GST payable is 90,000 it's valid for entire lease term.

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raghavendra b

raghavendra b (Querist)
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31 January 2021 thank you sir your replies

regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 January 2021 You are welcome.......

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