A private ltd. company is paying licensee fee of Rs. 15,000/- p.m. to a HUF for occupying an office room, you can say it as Rent paid for the office room.The HUF is not charging any GST in its bill, i.e., it is an unregistered person under GST.
1) Now, what would be the consequences / liabilities of the payer (company) under GST provisions?
2) Whether the company has to pay GST @ 18% on RCM basis?
3) What's the threshold limit for applicability of RCM?
1. GST payable by company under RCM.
2. yes, @ 18%
3. No exemption limit. GST liability over rent paid under RCM starts from the date of registration.
Thank you Sir for your reply.
But, Regarding the 3rd question, you mean the limit of Rs.5,000/- daily for RCM is not applicable in this particular case??
Per day limit 5000 applicable from URD to RD case
Per day limit 5000 applicable from URD to RD case
Sir,
but what if we are paying rent to one of our companies director whose office space is being used by us.is gst applicable.
O P Bagla & Co LLP
New Delhi
CA Inter
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