1. Whether GST will be applicable if a residential property is given on Rent to Commercial entity. If yes who would be liable to pay GST. 2. Whether it will make any difference if the commercial entity uses this rented residential property for the purposes of residence of its employees. 3.. Whether GST would be applicable to the remuneration paid to Managing Director and Executive Diretors which were promoted as Managing Diretor or ED . 4. Whether GST would be applicable as RCM on professional fees paid in the capacity of Retainership?
Hii
1. yes GST applicable on this situation , if landlord is registered then he is liable to pay gst and if he is not registered then tenant is liable to pay gst
2 in this situation gst is not applicable because residential property used for residential purpose then if out of GST
3. no gst on remuneration to Directors because its treated as salary
4 yes RCM is applicable subject to limit of Rs. 5000 per day as per section 9(4) of CGST Act , 2017
1 & 2. GST shall be applicable if the rent exceeds Rs. 20 lakhs in the year. The owner shall be liable for registration and payment of GST thereon.
3. It depends on how the relationship with directors has been maintained. In case it is an employer employee relationship, and TDS is deducted for salary, no GST shall be applicable. Or else, GST shall be applicable.
4. This would again be based on the relationship and TDS provisions followed.
1. GST is applicable for renting property for commercial purpose
2. No GST is applicable
3. If paid as salary then GST will not be applicable but if paid as remuneration then GST will be attracted.
4. RCM is applicable when the supplier is unregistered.
Ms. Vidya Jain Madam It is not clear if originally the property is given to Commercial Entity for business purposes why GST not applicable when it is used for residentail puproeses of its employees. The business of the commerical entity is not that of lenting property on rent. Originally the property is given to a commercial entity for its business purposes. Ultimatley the services of the employee are also used for commercial purposes. please clarify
Shri Lalit Bansal 4. yes RCM is applicable subject to limit of Rs. 5000 per day as per section 9(4) of CGST Act , 2017 Sir kindly clarify this limit is per day or per month. Retainership is paid to some 10-12 persons on an average of 15k to 75 k per month and TDS is also deducted
If property is used for residential purposes of the employees, it can't be said as commercial purpose.
Sir i missed comma, . I meant to say it does not make any difference. GST is applicable .
RCM limit is per day.
In case of retainership you have to pay GST whether on forward or reverse as the case may be
Hello,
GST is not applicable on residential house property given on rent.
Yes, GST will be applicable on professional fees paid under RCM.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
its for per day not per month , each day limit is separate,
Hi,
The limit of GST is Rs.5000/- day.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
