RCM on Rent Applicablity

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manager
84 Points Joined December 2011
residential rent paid by bank on behalf of staff whether rcm is applicable?
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On 09 April 2025 at 16:40 Report
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Master in Accounts & high court Advocate
9572 Points Joined December 2011

RCM Applicability on Residential Rent Paid by Bank The bank pays residential rent on behalf of its staff. In this scenario, the Reverse Charge Mechanism (RCM) might be applicable.

Key Considerations - *GST on Rent*: Residential rent is exempt from GST, but commercial rent is taxable. -

 *RCM Applicability*: RCM applies to certain services, including renting of immovable property. RCM on Residential Rent Since residential rent is exempt from GST, RCM would not be applicable on the rent paid by the bank for its staff's residential accommodation.

Commercial Rent However, if the bank pays rent for commercial properties (e.g., office spaces), RCM might be applicable, and the bank would need to pay GST on the rent. 

Conclusion In summary, RCM is not applicable on residential rent paid by the bank for its staff's accommodation, as residential rent is exempt from GST.

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On 09 April 2025 at 21:56
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manager
84 Points Joined December 2011
Thank you sir
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On 10 April 2025 at 08:51


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