FACTS
1) Four individuals (landlord) bought a residential property jointly in their name and awarded construction a ABC Pvt. Ltd. Landlord is an unregistered in GST.
2) ABC Pvt. Ltd. constructed the building and handed over back to the landlord (Four Individuals)
3) Residential building consists of 30 studio apartment with attached kitchen, toilet and bathroom and furnished with AC, Fridge, Fan, Bed, Mattress, Geyser etc.
4) Four Individuals let out the same residential property to ABC Pvt. Ltd. on monthly rental.
5) ABC Pvt. Ltd. further sublet the same property to XYZ on monthly rental
6) XYZ lease out the studio apartments to individuals for their residential purposes only ranging for a period of 3 months to 11 months. All individuals are not registered in GST.
Can someone clarify:
a) Applicability of GST or RCM in the hand of :
(i) Four Individuals (landlord)
(ii) ABC Pvt. Ltd.
(iii) XYZ
(iv) End users viz various Individuals
b) What if the value of lease is above Rs. 20 lakhs between the Four Individuals (landlord) and ABC Pvt. Ltd. during the FY.
c) In case the above chain of transactions are exempt from GST, then what HSN code shall be used to invoice lease money and how this is to be informed in GSTR-1 by ABC Pvt. Ltd. and XYZ.
d) Will the rental income earned by four individuals (landlord) shall be taxed under income tax act as Body of Individuals (BoP)
PLEASE HELP
CAclubindia
