Gts on rent for equipment

Gts on rent for equipment

We have given CCTV Cameras for Rent for 7 Years for 10 customers.
We get Rent of About Rs 13,000/- per month approx depending on Number of Cameras Installed.
After 7 years we have to Hand over the Cameras to them at No Extra Cost.
They have given a Adnance amount Non Refundable Of Approx Rs 60000/- form Each Plant.
They used to Cut TDS of 2% and make the payment.
BUT After GST should we charge the 18% service tax on Rs 13000/-?.

Asked 6 years ago in GST

Hi,

Yes, if you are registered under GST, then you have to charge GST.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar

CA, Mumbai

3576 Answers

183 Consultations

4.8 on 5.0

Talk to Abhishek Dugar

Further, can you share your agreement with the customers in this regards. Because, it seems to be a sale transaction with EMI facility.

Do customers have right to choose rental arrangment only for 1 year and not for 7 years?

Abhishek Dugar

CA, Mumbai

3576 Answers

183 Consultations

4.8 on 5.0

Talk to Abhishek Dugar

Yes, GST would b applicable in such rental income.

If you are not required to get registered under GST, then you need not charge GST. If this is the only income u have, which comes up to 13 lac per year, you need not register.