Our client had made Deposit of Rs.1,20,000/- for Rent in April 2017, The deal was that our client doesn't have to pay monthly rent of Rs.10000/- PM for 12 month instead it was get adjusted against deposit on monthly basis. Accordingly, only JV passed to expense out rent on monthly basis. My question is do our client have to pay GST on reverse charges? Owner of Premises is unregistered.
ACCORDING TO SEC 9(4) IF ANY SERVICE RENDERD FROM UNREGISTERD DEALER TO REGISTER DEALER AND THE SERVICE IS NOT COVERED IN EXEMPTION SERVICE, THEN THE RECEIVER IS LIABILE TO PAY THE GST ON RCM BASIS( IF PAYMENT EXCEEDS 5000 IN DAY)
HERE YOUR CLIENT IS LIABILE TO PAY GST ON RCM BASIS
THANK YOU!!!
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
