Gst registration - proof of principal place of business
This query is : Resolved
07 April 2018
My client’s place of business is leased. But, Electricity bill is on my client’s name.So when I’m registering for GST, can I select “Leased” for nature of possession and attach “Electricity bill” as proof??Or can I select “Own” and attach the same Electricity Bill??Kindly clarify.
07 April 2018
when you already know that the place is leased, then where is the confusion? get a NOC from the owner and attached it with the electricity bill
07 April 2018
But electricity bill is on client’s name. Not on the name of owner.
07 April 2018
let me explain in detail.Say, Client is Mr.XProprietorship business is M/s XYZOwner is Mr. ONow, GST registration is required to be done for M/s XYZLease deed between O and X for XYZ business, is expired.Electricity Bill is in the name of XYZ.What is the document that I have to attach now??
27 July 2024
In the context of GST registration, the nature of possession of the business premises and the documentation required to prove it are crucial. Here’s a detailed explanation of how to handle the situation based on the details provided:
### **1. Nature of Possession**
When applying for GST registration, the nature of possession of the business premises should be accurately represented. The nature of possession can be categorized as:
- **Own:** If the business premises are owned by the applicant or the business owner.
- **Leased:** If the business premises are rented or leased from a third party.
### **2. Proof of Principal Place of Business**
For GST registration, the following documents are typically required to prove the principal place of business:
- **Electricity Bill:** An electricity bill or utility bill in the name of the business can serve as proof of address.
- **Lease Agreement:** A lease or rental agreement (if applicable) showing the relationship between the landlord and the tenant.
- **No Objection Certificate (NOC):** Sometimes, an NOC from the property owner is required if the lease agreement is not available.
### **3. Handling Your Specific Situation**
#### **Nature of Possession:**
Given your situation:
- **Lease Expired:** Since the lease deed between Mr. O (owner) and Mr. X (proprietor) has expired, the lease agreement is no longer valid for registration purposes.
- **Electricity Bill in Business Name:** The electricity bill is in the name of M/s XYZ, which indicates that the business is operating from that location.
**Selecting Nature of Possession:**
- **Leased:** It is advisable to select “Leased” if the premises are rented, but the lease deed has expired. You should still provide an explanation and attach any other supporting documents.
- **Own:** If you select “Own,” it implies that the business premises are owned by the business or business owner. Given that the lease deed has expired, you cannot accurately select “Own” unless you have acquired ownership of the premises.
#### **Required Documents:**
Since the lease has expired, you may face challenges in providing the lease agreement. However, you can still use the following approach:
1. **Electricity Bill:** Attach the electricity bill as proof of address.
2. **Expiring Lease Agreement:** Attach a copy of the expired lease agreement if available, with a note explaining the situation.
3. **NOC from Landlord:** Obtain and attach a No Objection Certificate from the property owner if possible, explaining the situation and confirming that the business is operating from the premises.
4. **Affidavit or Declaration:** Provide an affidavit or declaration stating the nature of possession and the status of the lease agreement, if necessary.
### **4. Practical Steps**
1. **Prepare and Attach Documents:**
- Electricity Bill in the name of M/s XYZ.
- Expired Lease Agreement (if available) with an explanation.
- No Objection Certificate from the landlord.
- Affidavit or Declaration (if needed).
2. **Submit the Application:**
- Submit the GST registration application with the provided documents and explanations.
3. **Follow Up:**
- Follow up with the GST office to ensure that the documents are accepted and to address any further requirements.
### **Summary**
In your case, you should select “Leased” for the nature of possession and attach the electricity bill as proof. Since the lease deed has expired, also provide any additional documents such as a No Objection Certificate and an affidavit or declaration to support your application.
Consult with a GST professional if you need further assistance or if there are any additional specific requirements based on your jurisdiction or the GST office’s policies.
### **1. Nature of Possession**
When applying for GST registration, the nature of possession of the business premises should be accurately represented. The nature of possession can be categorized as:
- **Own:** If the business premises are owned by the applicant or the business owner.
- **Leased:** If the business premises are rented or leased from a third party.
### **2. Proof of Principal Place of Business**
For GST registration, the following documents are typically required to prove the principal place of business:
- **Electricity Bill:** An electricity bill or utility bill in the name of the business can serve as proof of address.
- **Lease Agreement:** A lease or rental agreement (if applicable) showing the relationship between the landlord and the tenant.
- **No Objection Certificate (NOC):** Sometimes, an NOC from the property owner is required if the lease agreement is not available.
### **3. Handling Your Specific Situation**
#### **Nature of Possession:**
Given your situation:
- **Lease Expired:** Since the lease deed between Mr. O (owner) and Mr. X (proprietor) has expired, the lease agreement is no longer valid for registration purposes.
- **Electricity Bill in Business Name:** The electricity bill is in the name of M/s XYZ, which indicates that the business is operating from that location.
**Selecting Nature of Possession:**
- **Leased:** It is advisable to select “Leased” if the premises are rented, but the lease deed has expired. You should still provide an explanation and attach any other supporting documents.
- **Own:** If you select “Own,” it implies that the business premises are owned by the business or business owner. Given that the lease deed has expired, you cannot accurately select “Own” unless you have acquired ownership of the premises.
#### **Required Documents:**
Since the lease has expired, you may face challenges in providing the lease agreement. However, you can still use the following approach:
1. **Electricity Bill:** Attach the electricity bill as proof of address.
2. **Expiring Lease Agreement:** Attach a copy of the expired lease agreement if available, with a note explaining the situation.
3. **NOC from Landlord:** Obtain and attach a No Objection Certificate from the property owner if possible, explaining the situation and confirming that the business is operating from the premises.
4. **Affidavit or Declaration:** Provide an affidavit or declaration stating the nature of possession and the status of the lease agreement, if necessary.
### **4. Practical Steps**
1. **Prepare and Attach Documents:**
- Electricity Bill in the name of M/s XYZ.
- Expired Lease Agreement (if available) with an explanation.
- No Objection Certificate from the landlord.
- Affidavit or Declaration (if needed).
2. **Submit the Application:**
- Submit the GST registration application with the provided documents and explanations.
3. **Follow Up:**
- Follow up with the GST office to ensure that the documents are accepted and to address any further requirements.
### **Summary**
In your case, you should select “Leased” for the nature of possession and attach the electricity bill as proof. Since the lease deed has expired, also provide any additional documents such as a No Objection Certificate and an affidavit or declaration to support your application.
Consult with a GST professional if you need further assistance or if there are any additional specific requirements based on your jurisdiction or the GST office’s policies.
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