Rent paid by company for residential purpose on behalf of employee

'"On behalf of employee..." ....."for his residential purpose"............. No GST.....

Sir,

If company take the property for rent and given to directors for residential purpose.. In that can we treat such HP as residential purpose?

	If company take the property for rent and given to directors for residential purpose.. In that can we treat such HP as residential purpose?

 

YES

Dear Mr Dhirajlal Sir.,
Thank you for the first reply...
('"On behalf of employee..." ....."for his residential purpose"............. No GST.....)
But, I have one doubt....
Then the company how to book the expense in their accounts....
If it's HRA or Rent paid...
If they book as rent paid. Then it's under RCM or not....?

It is rent paid for its employee's residential usage..... which is nil rated under GST........ Its not HRA

Hi Dhirajlal Sir,

My query is also similar but having differents facts, can you please suggest on this.

Query on Renting of immovable property:

Mr.A (landlord) registered under GST, provide service of renting of immovable property to a company XYZ ltd further company provide this property to their employees for their residential purpose.

Rent charged by Mr.A paid by company and the same is deducted from employee salary.

Whether service provided by Mr.A for renting of immovable property are liable to GST?

From the analysis of the provisions of GST law and the exemption notification Mr A is not liable to charge GST on the property which is let out to a Company for the use of residential purposes of its director. Since the wordings are clearly stating that it is used for residential purposes. Hence GTS would not be applicable neither under forward Charge nor reverse charge.