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GST on Rent

15 February 2018

A company entered with rent agreement for use house for commercial activity and paid a rent of rs.120000pm.
why laible to deduct GST as well as TDS.,

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31 Replies

PRABAKARAN N (STUDENT) (57 Points)
Replied 15 February 2018

Clear question required

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Pavan Kumar (192 Points)
Replied 15 February 2018

ABC company paid rent of rs.120000/ per month for commercial activity.
is company liable to pay GST
is company paid to landlord with TDS.
Treatment of GST.

sujith kumar dasa (banglore) (1496 Points)
Replied 15 February 2018

yes GST is applicable in hands of Landlord. However since turnover has not crossed 20lakhs per annum he may not register and pay tax on same.

RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 15 February 2018

GST not applicable for Residential Property. But, The Residential Property will issued to any Commercial activities / rent then It's fall under Commercial Rental...
If it's treated Commercial Rental then Threshold limit exceeding then Registration mandatory under GST...

If less than 20lakhs income for landlord then no need registration under GST. Also the Tenant no need to pay GST Upto March 2018*...

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Ajeet Singh (Service ) (190 Points)
Replied 16 February 2018

GST to be paid by Tenant under Reverse Charge...TDS u/s 194I applicable on Rent only (Excluding amount of GST).

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Pavan Kumar (192 Points)
Replied 16 February 2018

it means both tax are applicable

Pavan Kumar (192 Points)
Replied 16 February 2018

rent 120000pm
+GST 18% 21600
total 141600
-TDS 1% 1200 on rent
net rent payable 140400

please suggest correct or not
please also share RCM guidlinr for rent

RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 16 February 2018

Originally posted by : Pavan Kumar
	it means both tax are applicable

Rcm not applicable From 13th October 2017 to March 2018... So, Tenant don't want to Pay tax under RCM basis for the above said Periods...

Pavan Kumar (192 Points)
Replied 16 February 2018

Dear sir please clear baar of your answer

Pavan Kumar (192 Points)
Replied 16 February 2018

shot sir

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Pavan Kumar (192 Points)
Replied 16 February 2018

finally who response for GST, landlord or tenant

RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 16 February 2018

Originally posted by : Pavan Kumar
	rent 120000pm+GST 18% 21600total 141600-TDS 1% 1200 on rentnet rent payable 140400please suggest correct or notplease also share RCM guidlinr for rent

The Landlord will give GST Tax Invoice then Your calculations is correct. But, The landlord is URD. So, You ll give Rs. 120000- 1200 = 118800....