ranjitkarmakar (service) (307 Points)
02 November 2024IF LANDLORD AND TENANT ARE BOTH REGISTERED DEALER AND THE PROPERTY PROVIDED TO TENANT AS A RESIDENTIAL PROPERTY FOR THE EMPLOYEES OF TENANT - IS GST APPLICABLE ? IF GST APPLICABLE WHETHER IT IS FCM OR RCM - please advise
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5686 Points)
Replied 02 November 2024
Since both landlord and tenant are registered dealers, GST will apply.
However, the tax liability depends on the specific circumstances:
1. If the property is rented for personal use (e.g., employees' residence), GST is not applicable.
2. If the property is rented for commercial use (e.g., office space), GST is applicable.
Assuming the property is used for residential purposes, GST might not be applicable.
However, if the tenant uses the property for commercial purposes, GST would apply.
Regarding FCM (Forward Charge Mechanism) and RCM (Reverse Charge Mechanism):
In this case, since both parties are registered dealers, FCM would likely apply.
sabyasachi mukherjee
(27597 Points)
Replied 04 November 2024
CS Advocate Abhishek Goyal
(M Com FCS LLB M-AIMA )
(13726 Points)
Replied 13 November 2024
RCM is applicable in this case since tenant is registered. For residential property, registration of landlord is irrelevant.
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