Suppose an employer of a company provides residential facility to it employees under a contractual obligation... now for this the employer takes a house property on rent from URD.
Question arises whether the transaction between the company & the URD is liable to RCM...?? If yes , will the benefit of ITC be available to company.....????
Renting Residential House from URD Exempt from GST; No Reverse Charge or ITC for Employer-Employee Transactions An employer provides residential facilities to employees by renting a house from an unregistered dealer (URD). The question is whether this transaction is subject to Reverse Charge Mechanism (RCM) and if Input Tax Credit (ITC) is available. Experts in the forum agree that renting a residential house is exempt from GST, so the transaction does not attract RCM, and ITC is not applicable. Additionally, transactions between employer and employee are not taxable under this context. (AI Summary)
TaxTMI 
TaxTMI 
