Hi Friends
co. Xyz paying 60 k rent to individual for their office.
As per act xyz is not charging Gst as total rent is less than 20 lakhs.
but whether xyz is liable to pay gst under reverse charge.
what will be ur answer if monthly rent goes to 1.60 lakh.
XYZ is liable to pay gst @ 18% under RCM (without any threshold), if the individual is unregistered in gst. ITC will be allowed to XYZ for the gst paid.
Further, XYZ is liable to deduct TDS @ 10% under Income Tax Act, if rent exceed 180000 in a year.
CAclubindia
