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Tds on rent along with gst?

Jani Bhasha (student) (47 Points)

13 October 2018

Our company has paying rent 35000 per month. So we are deducting TDS on every month. Now my question is it applicable GST on Rent & services? If applicable tds calculating base amount or gross amount?

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Kaushal Kumar (31 Points)
Replied 13 October 2018

Yes gst is applicable on rent paid for use of building or any immovable property for the business purpose.

Refer CBDT Circular No. 23/2017 where it clearly indicated TDS has to be deducted on the amount excluding GST , only thing is that GST has to be mentioned separately and clearly in the invoice....!

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RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 13 October 2018

@ Jani Bhasha.,

As per GST "Commercial Rent is Taxable with18%. But, In the view of Service Provider and His T/O not exceeding 20lakhs then no need to register under GST. So, Check out the Landlord's Registration details under GST...

If He is not registered then GST not applicable** as Service Received from URD.

If He is registered under GST then He will be charge GST in his Rental...

In the view of TDS You ll deduct TDS on Basic Value...

** As per sec 9(4) of CGST act RCM applicable for Service received from URD.
But, The RCM still not applicable from 13th October 2017 to 30th September 2018...

(From July-17 to 12th October RCM applicable for URD related Inwards).

Check out these conditions.

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