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office rent & car hire charges monthly

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7 Points Posted on 25 July 2017
 

CASE - 1

Registered Business Deal with unregistered individual for paying Rent of Office premises.
Unregistered individual does not cross threshold of INR 20 lac
Who will liable to pay GST ?
In this case will reverse charge mechanism apply ?
Does registered business need to pay GST and do the compliance?
Can Registered business take CENVAT Credit ?
Percentage of GST ?
 

CASE- 2

Registered Business Deals with unregistered individual for paying Car Hire charges.
Unregistered individual does not cross threshold of INR 20 lacWho will liable to pay GST ?In this case will reverse charge mechanism apply ?Does registered business need to pay GST and do the compliance?Percentage of GST ?Can Registered business take CENVAT Credit ?
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On 25 July 2017 at 16:31 Report
Replies (7)
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GM
70 Points Posted on 25 July 2017
What are the cars being hired for?
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On 25 July 2017 at 17:14
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7 Points Posted on 25 July 2017
commercial vehicle
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On 25 July 2017 at 18:18
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7 Points Posted on 25 July 2017
commercial vehicle
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On 25 July 2017 at 18:18
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CS
214 Points Posted on 25 July 2017

First, if the landrod of the commercial building is not registered under GST then you're liable to pay GST on RCM basis and ITC can be avalied.

 

Second, if you're hiring or taking Cab on rent then RCM is applicable @ 5%.

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On 25 July 2017 at 19:37
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7 Points Posted on 25 July 2017
thanks naveen but can u please explain in details...
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On 25 July 2017 at 22:08
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GM
70 Points Posted on 25 July 2017
Rent of commercial property is supply as per GST. So is car hire. For unregistered dealers, a registered entity has to pay tax under RCM. ITC is available on rent. For car hire it will be available only if it's being hired out to another party
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On 25 July 2017 at 22:57
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GM
70 Points Posted on 25 July 2017
BTW it's ITC now not cenvat credit
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On 25 July 2017 at 22:58


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