Rent on commercial purpose

872 views 5 replies

anu saini

134 Points Joined April 2017

A shop is given on rent for commercial purpose at 45000/- per month rent paid.
tenant is registered person and landlord is unregistered.
what is the gst and TDS provision applied on it.
please clarify.

Replies (5)

sabyasachi mukherjee

27992 Points Joined May 2017

Invoices are raised of not.

Deeptha Srinivasa Ragavan

Article Assisstant

233 Points Joined January 2018

It is subject to TDS under section 194I since it crosses threshold limit of Rs.2.4L. Also if the payee is unregistered it is subject to GST under reverse charge mechanism.

CA Rashmi Gandhi

Chartered Accountant

86505 Points Joined April 2011

GST under RCM applicable only if residential building provided for commercial purpose. So , GST not applicable in your case.

As the total rent is Rs 540000, TDS @ 10% deductible u/s 194I if you are audited u/s 44AB

Saravanan nagaraj

463 Points Joined September 2019

As per the Goods and Services Tax GST Act, if an individual rents out a property to a business entity for commercial purposes, the landlord is required to register for GST if their annual rental income exceeds the threshold limit of Rs. 20 Lakhs.

As per Income Tax, you should declare your Income as Income from business and professional. Not under income from House Property.

As you are unregistered person in GST, raise Invoice without GST. Just follow the invoice format. Issue to your tenant.

As a registered person, Tenant(he) makes payment against that invoice. Then, you can give receipt against his payment for Income Tax purposes.

Tax audit limit under 44AB, 2cr.

Phyllis Johnson

22 Points Joined November 2024

Hi,

I understand that renting a space for 45,000 VND per month is important. Since the landlord is not a tax-registered person, you will not have to pay GST. However, you will need to deduct 10% TDS if the total rent exceeds 2,40,000 VND in a year, which is 4,500 VND per month. Don’t forget to keep the receipts and submit a copy of the TDS deduction certificate to the landlord! Good luck with your business! tomb of the mask