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GST applicable

Priya Kashyap (Student) (7053 Points)

31 March 2019

Rent deed for renting of floors for residential or commercial purpose shall be called as mixed or composite supply ?

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pritesh (CA Final student) (7101 Points)
Replied 31 March 2019

“A house is given on rent one floor of which is to be used
as residence and the other for housing a printing press.
Such renting for two different purposes is not naturally
bundled in the ordinary course of business. Therefore,
if a single rent deed is executed it will be treated as a
service comprising entirely of such service which attracts
highest liability of service tax. In this case renting for use
as residence is a negative list service while renting for
non-residence use is chargeable to tax. Since the latter
category attracts highest liability of service tax amongst
the two services bundled together, the entire bundle
would be treated as renting of commercial property.”

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Priya Kashyap (Student) (7053 Points)
Replied 31 March 2019

can you make it clear in simple terms p
please 🙏

pritesh (CA Final student) (7101 Points)
Replied 31 March 2019

It is treated as bundles supply the tax to be charged on both residential and commercial property because single agreement has been entered for property given on rent