Menu
gst on rent
My tenant refuses to pay gst, because the lease deed signed 20 years ago said “ rent inclusive of all taxes”.But by some misunderstanding , they paid for July and August. Can they stop ? I am sending bills regularly. They are not refusing to pay in writing. I not receiving any rent also.Please advise.
Replies (4)
Well, as such as per the clause referred to lease deed, you cannot demand any additional tax, including GST. But check any other clause which may be in your favour....... as the lease deed is already 20 years old, and also any such inevitable changes could been taken care of.
Secondly, you can negotiate with your leasee about the ITC available for the GST paid, (provided he is registered under regular scheme), and as such nothing has to be paid by him from his own pocket.
They understand that if they pay GST over and above the rent and then claim it as ITC , nothing goes out of there pocket.In fact they want me to submit bill after extracting GST out of the rent .
That way they end up less then the actual rent because GST element they will claim.
Yes, matter of litigation. You cannot demand extra due to legal clause in lease deed!!!
If you insist, may file suit for recovery of GST, being charged finally over END USERS.
Recent Threads
- Planning of Ceased a Business i.e Closure of Compa
- Property value in 26QB
- Form 26QB Multiple Buyer/Multiple seller
- Company Formation for clothing business
- TDS on purchase 194Q
- Compensation for urban land acquisition
- Understanding section 269st
- CASH AS GIFT OR FD AS GIFT
- NPS Pre Maturity full exit taxation rules
- Planning to ceased a Business
Related Threads
CAclubindia
