RCM on rent

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75 Points Posted on 25 January 2020
Is it necessary to pay RCM on rent ?

Business is paying rent to URD.


kindly share your answer with reference of law/notification.

Thanks in advance
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On 25 January 2020 at 13:14 Report
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Quick Summary
This discussion clarifies whether Reverse Charge Mechanism (RCM) applies when a business pays rent to an Unregistered Dealer (URD). It's established that RCM generally doesn't apply in this scenario, and forward charge is the correct mechanism. Section 9(4) and specific notifications were considered, confirming RCM is not applicable for rent paid to non-government URDs.

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Studwnt
1141 Points Posted on 25 January 2020
What is URD is it Govt establishment? if it is then only RCM applies for all other cases it's forward charge.
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On 25 January 2020 at 13:36
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75 Points Posted on 25 January 2020
No it's not the government entity ....pls refer the section
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On 25 January 2020 at 13:49
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Studwnt
1141 Points Posted on 25 January 2020
Section 9(3). Then forward charge applies and not reverse charge
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On 25 January 2020 at 13:54
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75 Points Posted on 25 January 2020
Ok thank you
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On 25 January 2020 at 13:58
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General Manager - Finance
1040 Points Posted on 25 January 2020

@ Ms. Roshni: Section 9(4) will be applicable or not?

I am asking about Notification No. 01/2019 (CGST Act) dated 29-01-2020.

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On 25 January 2020 at 16:24
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Studwnt
1141 Points Posted on 25 January 2020
9(4) is currently applicable to only 3 specified transaction...the one which is quoted in question RCM doesn't apply on same
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On 25 January 2020 at 20:32

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