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Assessee having partner remuneration and commercial rent regarding gst

561 views 2 replies

jagannadhan Yalla

A/c Manager-CA Student

28 Points Posted on 05 June 2018

Hi all

i have a question regarding GST

If an assessee receivng Commercial office rent of 11,00,000 per annum

and drawing Remuneration of Rs72,00,000 per annum from partnership Firm

here taxable supply of Commercial rent is below GST limit (20 lacs)

if we add partner remuneration it will exceeds 20 lacs limit

here partner remuneration is the criteria, whether Partner Remuneration is under GST or in negative list

for determining the limt of 20 lacs, we have to add the remuneration to taxable supplies (i.e commercial rent) ?

please clarify weather assessee have to obtain GSTN to collect GST on Commercial rent and pay to the department.

Replies (2)

CA Padmasri Manyam

CA in Practice

1340 Points Posted on 05 June 2018

The amount received from Firm can be considered as part of employment (though it is taxable under the head business or profession under Income tax). As per Schedule III services provided by employee to the employer is neither supply of goods nor supply of service.

Aggregate turnover includes taxable and exempted supplies. The remunation received from the partnership firm does not qualify as supply itself. Therefore, it is not required to be include for aggregate turnover.

However, the open question is whether the relationship between partner and the partnership firm is employer-employee.