GST on RENT
Page no : 2
Devyani Vengurlekar
(9 Points)
Replied 10 July 2017
CA Akhilesh Kumar Kandpal
(Proprietor A K Kandpal & Associates)
(1442 Points)
Replied 10 July 2017
JERRY JOHN
(62 Points)
Replied 10 July 2017
Hope this is correct. If it is correct, tenant can simply deduct GST from monthly payout and balance has to passed on to the landlord. In this case Composition will not apply as rent is coming under Service. Pl seek agreement or disagreement...
CA Akhilesh Kumar Kandpal
(Proprietor A K Kandpal & Associates)
(1442 Points)
Replied 11 July 2017
suppose the rent is 100000 and rate of tax is 18 %......than the tenant will have to pay GST on 100000 @ 18% (i.e. 18000) to the governement and he should not deduct this amount from the rent which he has to pay to landlord. Tenant will have to pay landlord full 100000.....tenant will get input credit of Rs 18000 which he has paid on reverse charge basis hence question of deducting it from the rent does not arise.....
even if the tenant is a composition dealer then also the position will remain the same.....because sec 9(4) clearly says that if "registered" dealer buy "GOODS or SERVICE or BOTH" from an "unregistered" dealer than he has to pay tax on reverse charge basis......it does not distinguish between regular or composition dealer.
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