RCM FOR EMPLOYEE AND ROU LEASE RENTAL


This query is : Resolved 

Quick Summary
This discussion clarifies the applicability of GST under the Reverse Charge Mechanism (RCM) for lease rentals paid by a company. It confirms that GST under RCM is applicable for residential units leased for employees, with the company responsible for payment and subsequent ITC claim. The query also touches upon yearly lease rentals paid to farmers for Right of Use (ROU) land, implying RCM may also apply in such scenarios.

(Querist)
18 July 2022 We are paying Monthly Lease rent to the house/flat owners of our Employees under a Lease
Agreement between the company and the House/Flat Owner. Also, we are paying lease rent to farmers for ROU on a yearly basis Pl. advise whether GST under RCM is applicable.
regards,



18 July 2022 Yes, for residential units company has to pay GST under RCM and claim it under ITC.

A K SARMA (Querist)
18 July 2022 Thank you, Sir, for resolving the query.



18 July 2022 You are Welcome..


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