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Lalitha Likitha (38 Points)

28 October 2018

Renting of immovable property is taxable under reverse charge or normal charge???

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11 Replies

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 28 October 2018

The said activities is not under RCM basis in current scenario...

Based on Landlord view...

The Rental income Exceeding 20lakhs (Include any other business income) from Commercial Property or Commercial Activities for Residential Property then The Landlord will be register under GST and Charge GST on his Service..

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Lalitha Likitha (38 Points)
Replied 28 October 2018

Renting of immovable property by the government in this case who will be taxable

1 Like

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 28 October 2018

As per Notification 3/2018 CT (r)

Services supplied by Govt for
renting of immovable property to a person registered Under GST is under RCM
(Recepient is liable to do RCM)

(Note : As per section 24 CGST Act the person availing services which are under RCM is liable to take Registration )

Shivam RC (Student) (23683 Points)
Replied 29 October 2018

As per Serial Number 5A of Notification Number 13/2017 - Central Tax ( Rate ) dated 28th June 2017,

"Services provided by Central Government, State Government, Union Territory or Local Authority by way of Renting of IMMOVABLE PROPERTY to a person registered under the Central Goods and Services Tax Act, 2017" - is TAXABLE under GST and the Liability to pay Tax is on RCM i.e. the RECIPIENT OF SERVICE will pay GST on behalf of Government...

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MY Indians Tv (292 Points)
Replied 29 October 2018

renting of immovable property to a registered person RCM applies (by govt)

Renting of immovable property to an unregistered person:- Forward charge will apply

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Jyothsna Priya Kanchumarthy (192 Points)
Replied 31 October 2018

Renting of immovable property provided by govt is an exception to the provisions of RCM for the services provided by govt right? Then govt is liable to pay tax?

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 31 October 2018

NO IF THE RECEIPIENT IS NOT REGISTERED THEN GOVT IS NOT REQUIRED TO DEPOSIT GST , IT WILL BE TREATED AS EXEMPTED SUPPLY

MY Indians Tv (292 Points)
Replied 31 October 2018

no you can't say that it is exempted. because there is no such thing in exemption list or any where. and there is no mention about that in RCM. so with literal interpretation one can say that it is taxable under forward charge

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 31 October 2018

WHEN THE SAID SERVICE UNDER RCM THEN HOW IT CAN BE TAXABLE UNDER FORWARD CHARGE,???? WHO IS GOING TO DEPOSIT THE GST, THE SUPPLIER ?????

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MY Indians Tv (292 Points)
Replied 31 October 2018

no services provided to unregistered dealer by renting of immovable property by government is not specified under rcm.

Sir,I'm saying about services provided to unregistered dealer. services provided to registered dealer is taxable under reverse charge only

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Jyothsna Priya Kanchumarthy (192 Points)
Replied 31 October 2018

services provided by govt is taxable under RCM excluding
(1)renting of immovable property
(2) (i)services by department of posts, speed
post, express parcel post, etc to other than
govt
(ii) services in relation to an aircraft or a vessel
(iii)transport of goods or passengers