9911796707
TMI BlogRental Income by Director from CompanyX X X X Extracts X X X X X X X X Extracts X X X X ..... Rental Income by Director from Company X X X X Extracts X X X X X X X X Extracts X X X X ..... h income should be under forward charge only . Rental Income for 2021-22 was 23 lakhs and 2022-23 -29 lakhs. What recourse to be taken now ? Form 2023-24, after the above clarification no RCM paid by the company, and director want to take the registration , on crossing 20 lakhs, If it is correct? Issue : 2 Can Director give his residential property to its company at nominal value , say as con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sent Fees, on considering the Rule 28 provisions . As the liability under reverse charge, company can avail IT CA. Raveendran P M Reply By Pradeep Reddy: The Reply: Issue 1 Since GST has already been paid by the Company, no GST liability should arise in the hands of Director on the same income again. It is advisable to obtain declaration from the company that they have GST under reverse charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on such rent. Such declaration can be furnished to the GST authorities (a) in the event the GST authorities raise demand on the director, or (b) upfront to avoid allegations of fraud, suppression etc later by the department Issue 2 yes Director give his residential property to its company for rent. As regarding valuation, it must be noted that director and company are considered as related part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies as per section 15 of the CGST Act. Given this, GST shall be payable on the rental value based on the market rates but not nominal. Company avail ITC of such GST paid. Reply By Raveendran PM: The Reply: Thanks Pradeep ji . Issue 1. - Your reply understood. Issue 2 I am on Rule 28 of the CGST Rules : Second Provisio : Provided further that where the recipient is eligible for full input ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x credit, the value declared in the invoice shall be deemed to be the open market value of the goods or services. In the current case, being RCM in the hand of company and the same is eligible for full input tax credit, is market value come in to play for for Invoice Value ? Reply By Padmanathan Kollengode: The Reply: I agree with Pradeep JI. There are lot of judgement in ST regime stating that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where recipient has paid, it cannot be taxed in hands of supplier. Pls refer M/s. Aadarsh Sri Sai Manpower Solution (p) Ltd., vs Commissioner, Customs, Central Excise & Service Tax - 2023 (7) TMI 917 - CESTAT NEW DELHI. Reply By Pradeep Reddy: The Reply: I stand corrected on issue 2. Value can be a nominal value as long as company is eligible for full credit i.e. not engaged in exempted activit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y from said premises
Reply By Raveendran PM:
The Reply:
Thanks , Pradip Ji X X X X Extracts X X X X X X X X Extracts X X X X
|
