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TDS deduction on payment of rent

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Ria

Student

45 Points Posted on 11 April 2024

Hello, i have a property in Goa that I am handing over to an Airbnb property manager who will pay me a monthly rental of Rs. 90,000/-. He is just an individual tax payer and not registered as any company/sole proprietorship [does not have a GSTIN] as of now.

2 questions:

1. Is he liable to collect GST right now? What about later when he gets himself registered, will he have to collect it retrospectively or only from that date?

2. Is he liable to deduct TDS on rent payment? If so, how much?

Thank you so much, I don't want to get scammed therefore clarifying the tax questions.

Replies (3)

Quick Summary

This discussion clarifies tax implications for property owners renting out to an individual Airbnb manager. It addresses whether the manager needs to collect GST and their liability for TDS deduction on rent payments, explaining the conditions under which TDS applies and the relevant rates.

Bindu

CA Final Student

75 Points Posted on 12 April 2024

1. Letting out property for commercial purpose will attract GST under forward charge.You are the service provider here and therefore you will be liable to pay GST under forward charge whenever rentals crosses the threshold limit. However,in your case the rentals are less than 20 lacs(threshold limit for GST registration).There GST liability does not arise in the given case.

2. Since he is an individual, he will be liable to deduct TDS only if he is liable for Tax Audit in which case he has to deduct TDS @ 10 percent from rentals.

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 12 April 2024

Yes, I agreed to Ms Bindu,

@ Ria,

Is that property is commercial or residential...??

Is he used the property for the purpose of residential or commercial...??