Hi
A proprietor is planning to rent out his residential property to a person for Rs. 260000/- per month. The Proprietor is not covered u/s 44AB. Is TDS applicable on the same? Also what about GST?
10 Replies
sabyasachi mukherjee
(27574 Points)
Replied 02 January 2023
Rent for business purposes then gst and tds is applicable.
gst while billing and while paying deduct tds and pay.
gst while billing and while paying deduct tds and pay.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177736 Points)
Replied 02 January 2023
The tenant will deduct TDS u/s. 194-Ia or u/s. 194-Ib of IT act, depending upon his status under tax audit.
If the property owner is not registered under GST, he is not liable to charge GST over rental service, provided rented for RESIDENTIAL purpose.
Dimpy
(Accounts)
(97 Points)
Replied 02 January 2023
The property owner and the tenant both are registered under GST. So tenant will pay gst under RCM right? There's no liability on the Property owner?
Dimpy
(Accounts)
(97 Points)
Replied 02 January 2023
Hi thank you for the revert.
So property owner has to charge GST even though he has rented out for residential use. Please confirm
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177736 Points)
Replied 02 January 2023
Yes, provided he is already registered under GST..
Dimpy
(Accounts)
(97 Points)
Replied 02 January 2023
As per the latest notification on 30th December 2022,
Government has clarified on the new GST or goods and services tax rules on rent, which came into effect from 18th July. In a tweet, PIB said that “renting of residential unit taxable only when it is rented to business entity️.” It further clarified that “no GST when it is rented to private person for personal use; no GST even if proprietor or partner of firm rents residence for personal use.”
Vide Notification Dated 30th December 2022, the CBIC has notified
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177736 Points)
Replied 02 January 2023
Yes, with the new notification, GST will not be applicable over residential units from 01.01.2023.
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