RCM on agritulture rent

698 views 1 replies
User Avatar

F&A
39 Points Joined February 2009

Sir,

As a LLP i had taken land on lease from registered and non registered vendors for agriculture activity in this case RCM applicable on me. in notification "applicable on Rental services availed of Commercial Immovableshould". kindly help

Thanks

0 Reply Share Follow
On 18 December 2024 at 12:33 Report
Replies (1)
User Avatar

Master in Accounts & high court Advocate
9529 Points Joined December 2011

As an LLP engaged in agricultural activities, you've taken land on lease from both registered and non-registered vendors.

The notification you're referring to is likely Notification No. 13/2017-Central Tax (Rate), which specifies the services subject to RCM.

The relevant part of the notification states that RCM is applicable on "rental services" availed of "commercial immovable property".

Here's the key point: - _Agricultural land_ is not considered "commercial immovable property" for the purpose of this notification. -

_Rental services_ for agricultural land are exempt from RCM.

However, if you're using the leased land for any non-agricultural purposes, such as construction or commercial activities, RCM might be applicable on the rental services.

To confirm: 1. Review your lease agreements to ensure they're solely for agricultural purposes.

2. Verify that the leased land is not used for any non-agricultural activities. 

Reply
On 18 December 2024 at 13:53


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading