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RCM applicable on Brokerage paid to unregistered real estate broker

Darshan Vandra (Senior Accountant) (64 Points)

02 July 2021

RCM applicable on Brokerage and commission paid to unregistered person ?

It is related to Transfer development Right (TDR) transaction ?

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4 Replies

CA Altamush Zafar (GST Consultant) (15986 Points)
Replied 02 July 2021

RCM not applicable on brokerage.

1 Like

Imthias ahamed Kormath (910 Points)
Replied 02 July 2021

If any contract between person and regd Real estate under gst for a commission .

1 Like

Darshan Vandra (Senior Accountant) (64 Points)
Replied 02 July 2021

If there is not contract between company and unregistered person.
the commission paid to agent is cover under RCM ?

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 02 July 2021

No there is no RCM on commission paid to URD.
As per the notification 5/2019 the liability to
pay tax on TDR is on promotor under RCM .

So in that case if it is a portion of TDR amount then in that case the person (promotor) is liable to pay tax under RCM

2 Like