Composition scheme for Retail and rent income

Page no : 2

Avinash Dewan (64 Points)
Replied 22 July 2017

There is no clubbing in gst. Clubbing provisions are there in the IT Act 1961.

Upgrade to CAclubindia Pro. Subscribe Now!

Sanjay Sanjay (50 Points)
Replied 22 July 2017

Avinash ji what your opinion for me .what I do

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 22 July 2017

Clubbing prov is in IT but in GST everything what is in Income Tax will reflected in GST also

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 22 July 2017

there is no such condition in gst laws that turnover related to clubbed income shall be added to the turnover of the person in whose income the income has been clubbed......and secondly in the present case if son in major, then even clubbing provision will not aterect....

Sanjay Sanjay (50 Points)
Replied 23 July 2017

thx for your quality suggestions .it's not be batter for me that I transferred my retail business to my son. I running my hotel bussiness under gst free

Upgrade to CAclubindia Pro. Subscribe Now!

Avinash Dewan (64 Points)
Replied 23 July 2017

@ Sanjay... to come under composition scheme you have to transfer your property. We should not ignore the income tax implications of this.
If you transfer your property to any relative as defined u/s 2 (41) of the Income Tax Act without consideration, the value of the property will not be added to his/her income. However if you transfer your property to your spouse, son's wife or son's minor child without adequate consideration, income from that property will be clubbed in your hands u/s 64 of the IT Act. So be careful to whom you transfer your property. If you transfer your property to any relative other than the 3 mentioned above, you will be saving income tax too. But you cannot ignore the cost of transfer on registration which will be incurred.