IF LANDLORD AND TENANT ARE BOTH REGISTERED DEALER AND THE PROPERTY PROVIDED TO TENANT AS A RESIDENTIAL PROPERTY FOR THE EMPLOYEES OF TENANT - IS GST APPLICABLE ? IF GST APPLICABLE WHETHER IT IS FCM OR RCM - please advise
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GST ON RENTAL OF RESIDENTIAL DWELING UNIT ON RCM
Replies (3)
Since both landlord and tenant are registered dealers, GST will apply.
However, the tax liability depends on the specific circumstances:
1. If the property is rented for personal use (e.g., employees' residence), GST is not applicable.
2. If the property is rented for commercial use (e.g., office space), GST is applicable.
Assuming the property is used for residential purposes, GST might not be applicable.
However, if the tenant uses the property for commercial purposes, GST would apply.
Regarding FCM (Forward Charge Mechanism) and RCM (Reverse Charge Mechanism):
In this case, since both parties are registered dealers, FCM would likely apply.
The property is
landlord is the supplier
landlord is the supplier
RCM is applicable in this case since tenant is registered. For residential property, registration of landlord is irrelevant.
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