TDS deduction on payment of rent

TDS 190 views 3 replies

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)
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.
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...??
Tds is applicable, but not exceeding threshold limit


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