I AM A PARTNER AND I HAVE LEASE AGREEMENT FOR MINING ON MY OWN NAME AND I HAVE A BUSINESS UNDER PARTNERSHIP FIRM. AND ROYALTY EXPENSES ARE PAID FROM MY BUSINESS. SO WHETHER I HAVE TO PAY RCM ON ROYALTY FROM MY FIRM AND CAN CLAIM CREDIT ?..OR I HAVE TO APPLY FOR NEW REGISTRATION AS PROPRIETOR AND HAVE TO SHOW SUB LESASE TO THE FIRM..?
WHETHER IT WILL BE CORRECT PROCEDURE IF LEASE AGREEMENT IS ON THE NAME OF PARTNER AND PAYING RCM AND CLAIM OF CREDIT ON FIRMS GSTIN...?
Yes, on royalty GST will apply under reverse charge mechanism. Further, such payment of GST under reverse charge mechanism would be eligible as ITC in the hands of the recipient of supply for payment of GST.
BUT SIR IF LEASE AGREEMENT IS ON THE NAME OF PARTNER. AND ALL BUSSINESS OF MINING IS CONDUCTED UNDER PARTNERSHIP FIRM THAN WHO HAVE TO PAY TAX ...PARTNERSHIP FIRM OR PARTNER..?
PARTNERSHIP FIRM IS MAKING PAYMENT AND SHOWING EXPENDITURE. SO LEASE AGREMENT ON THE NAME OF PARTNER DOES NOT HAVE RELEVANCE?
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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