RCm paid for Land Rent

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This query is : Resolved

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This discussion clarifies the application of the Reverse Charge Mechanism (RCM) for GST on rent paid for land. If a GST-registered company pays monthly rent to an unregistered individual, even a director, for official or factory premises, GST is applicable on an RCM basis. This rule, effective from 18/07/2022, means the registered company is responsible for paying the GST.

sona1

sona1 (Querist)
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21 July 2022 ABC Pvt. Ltd. (GST Register Company ) pays RENT Per Month Rs. 30,000.00 to Mr. Sukanta Mondal (one of the Director of ABC Pvt. Ltd. Company) (but GST Unregister Person) after Deducted TDS for LAND purpose where ABC Pvt Ltd. Company Situated & doing here official cum factory related daily work ,

For this transaction Purpose ABC Pvt. Ltd. Company will pay RCM against this as per new rule w.e.f. 18/07/2022

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 July 2022 Yes, RCM applicable in such a case.

Udaya Chandran

Udaya Chandran (Expert)
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23 July 2022 As per the new provision, when the residential unit is rented out to a registered person, the registered person has to pay GST on RCM basis.

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