1) does gst applicable on renting of shops by
local authorities whose annual rent exceeds rs 45 lacs but rent per shop is under rs 2000 per month?
2) on what value gst will be applicable to contractor supplying labour for manpower services to local authority...on whole agreement value which include salary of employees or on commission amount which is received by contractor?
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Replies (5)
1.GST is applicable on renting of shops by local authorities at the rate of 18%. However, renting of immovable property by local authority does not qualify for reverse charge mechanism and hence the business entity receiving such service from local authority is not liable to pay GST.
2. GST is applicable only on the amount of commission received by man power supplier from the local authority. Also, no GST is applicable for services provided by employees to the employer in the course of employment. Therefore, no GST is payable by man power supplier on the salary paid to his employees.
2. GST is applicable only on the amount of commission received by man power supplier from the local authority. Also, no GST is applicable for services provided by employees to the employer in the course of employment. Therefore, no GST is payable by man power supplier on the salary paid to his employees.
akila ji in renting of immovable property iam not clear whether to charge gst on rent collection or not?
Is it local authority providing rental services or you providing rental services to local authority?
If you are receiving rental services from local authority, then no need to pay GST on the services received
Its local authorities providing rental service
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