RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
This query is : Resolved
19 November 2024
Dear Experts,
Please guide me on below mentioned condition:-
A is a registered person under RCM (A can be Proprietor or a Company). Business of A is of Work Contract nature. So, A pay rent to different unregistered landlord for the purpose of stay of his employees. Here property is residential.
Will RCM be paid by A ?
Hope my question is clear to you and you are requested to please share notification number of GST in reference of your response.
Please guide me on below mentioned condition:-
A is a registered person under RCM (A can be Proprietor or a Company). Business of A is of Work Contract nature. So, A pay rent to different unregistered landlord for the purpose of stay of his employees. Here property is residential.
Will RCM be paid by A ?
Hope my question is clear to you and you are requested to please share notification number of GST in reference of your response.
20 November 2024
Yes, RCM applicable.
As per Notification No. 05/2022- Central Tax (Rate) Dated: 13th July, 2022 issued by GST council which has came into effect from 18th July, 2022.
As per Notification No. 05/2022- Central Tax (Rate) Dated: 13th July, 2022 issued by GST council which has came into effect from 18th July, 2022.
20 November 2024
Thank You Sir।
As per recent notification 9/2024 Integrated Tax (Rate) dated 8th October 2024, RCM shall applicable to services by way of renting any property other than a residential dwelling provided by any unregistered dealer to registered dealer. This notification came into force from 10th October 2024.
So, what does this mean? Is there no RCM liability now in my case as mentioned earlier?
As per recent notification 9/2024 Integrated Tax (Rate) dated 8th October 2024, RCM shall applicable to services by way of renting any property other than a residential dwelling provided by any unregistered dealer to registered dealer. This notification came into force from 10th October 2024.
So, what does this mean? Is there no RCM liability now in my case as mentioned earlier?
20 November 2024
RCM applicable in case the rent is charged as business expenses being rent related to employees.
RCM not applicable in case it's personal expenses and GST not applicable.
See the link for more clarification.
https://lawlegends.in/article/gst-on-rental-commercial-residential-property-under-rcm/
RCM not applicable in case it's personal expenses and GST not applicable.
See the link for more clarification.
https://lawlegends.in/article/gst-on-rental-commercial-residential-property-under-rcm/
20 November 2024
Thank U So Much Sir for making it clear.
20 November 2024
You are welcome...
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