My Client is in process to Purchase a Commercial Office Space from Mr. X, partner in a Firm. Mr. X is selling the commerical Office as Individual and not as Partner in firm.
Mr. X was existing member in the building and the Property was redeveloped by Mr. X, wherein he is the partner in the firm.
What will be GST rate & TDS rate for Commercial Office considering my client point of view.
Kindly advise
A complex transaction! To determine the GST rate and TDS rate for the commercial office space purchase, let's break down the scenario:
GST Rate 1. *Supplier's Status*: Mr. X is selling the commercial office space as an individual, not as a partner in the firm.
2. *Property Redevelopment*: The property was redeveloped by the firm, where Mr. X is a partner.
3. *GST Applicability*: GST is applicable on the sale of commercial property, including redeveloped properties.
Considering these factors, the GST rate would be: - *GST Rate*: 18% (as per Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017)
However, there's an important consideration: -
*Exemption*: If the sale is considered a "resale" of a property that was previously purchased or redeveloped, it might be exempt from GST (as per Notification No. 47/2019-Central Tax (Rate) dated October 30, 2019).
To qualify for this exemption, certain conditions must be met. It's essential to consult with
CCI
Pro
CAclubindia
