Rcm on rent paid

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This query is : Resolved

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This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) on rent paid for commercial property. The scenario involves an unregistered landlord and a registered tenant, with rent exceeding the threshold. Experts confirmed that RCM is not applicable in this specific situation, as the exemption typically applies to services provided by government entities.

nitin

nitin (Querist)
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18 November 2020 Dear experts,
Is reverse charge applicable as per latest rules in following situation: Land lord is unregistered. Tenant is registered Property on rent is premises being used as commercial property Rent is Rs 30000/- per month.
thanks in advance

Lekhraj sood

Lekhraj sood (Expert)
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18 November 2020 No , not applicable in this case.

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nitin

nitin (Querist)
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19 November 2020 Ok sir, please suggest in which case rcm on rent will applicable ??

Lekhraj sood

Lekhraj sood (Expert)
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19 November 2020 Services by the Government: Services supplied by the Central Government, State Government, Union territory or local authority by way of renting of immovable property to a registered person.

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nitin

nitin (Querist)
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19 November 2020 ok sir thanks for your valuable reply.

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