An Assesses has leased out the liquor license (for Retail Trade) to another Party.
As per terms of the contract, the lessee shall pay fixed amount monthly and also the annual fee payable for the license at the time of renewal.
The lesser is entitled to take credit of TCS done on purchase made by lessee.
There are three components
- Monthly lease charges
- TCS benefit
- Annual license fee paid by the lessee
I am of the opinion all the three will have to be offered to tax both for Income tax as well as GST.
Please Confirm.
Tax Implications of Leasing Liquor License: Monthly Lease Charges GST, Annual Fee Reverse Charge Unclear, Needs Clarification An individual inquired about the tax implications of leasing a liquor license, where the lessee pays monthly lease charges, an annual license fee, and the lessor takes credit for Tax Collected at Source (TCS) on purchases made by the lessee. The individual believes all components should be taxed under both Income Tax and GST. A respondent agreed with this view, while another noted that monthly lease charges attract GST for the owner, and the annual license fee paid by the lessee might involve reverse charge, suggesting the need for government clarification. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
