Reverse charges on commercial land / building rent

RCM 576 views 2 replies

Dharmendra Kumar

Sr Manager

77 Points Posted on 21 August 2017

We are in Outdoor Advertising business (Registered in GST) and paying Rent on commercial land / building to Landlords in JHARKHAND state for outdoor advertisement on Hoardings on yearly basis in advance.(For eg. Rent for the Period 01/04/2017 to 31/03/2018 is paid in advance on yearly basis). Will reverse charge is applicable. If we have to pay gst on reverse charge basis. What will be the GST Rate ( CGST 9% + SGST 9% Or IGST 18% ). All Landlords are not registered in GST. Our landlorads are not giving any Invoice or Bill for the Rent and we have an agreement with lanlords on stamp paper that we will pay rent in advance on yearly basis.( For. Example Rs.80000/- in advance on yearly basis). Can we get Input Tax Credit for the Rent Paid Amount?

Replies (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 21 August 2017

Will reverse charge is applicable.

Yes.

If we have to pay gst on reverse charge basis. What will be the GST Rate ( CGST 9% + SGST 9% Or IGST 18% ).

CGST 9% + SGST 9%

All Landlords are not registered in GST. Our landlorads are not giving any Invoice or Bill for the Rent and we have an agreement with lanlords on stamp paper that we will pay rent in advance on yearly basis.( For. Example Rs.80000/- in advance on yearly basis). Can we get Input Tax Credit for the Rent Paid Amount?

Yes.