RCM TAX ON JOINT PROPERTY

[SURYAKANT MITHBAVKAR]

If proprietor (Registered with GST) is having joint house property wherein Joint holder is his son who is not registered under GST. They have rented the property and rent received (Income) during the year from their joint rented property they will share 50% each for income tax purpose.

Whether the proprietor is liable to pay RCM under the above condition. if yes whether he has to pay RCM on 50% or 100% of rent received.

[Amit Agrawal]

Both the proprietor and his son are service provider / supplier here. Hence, question of liability to pay gst under RCM upon the proprietor does not arise.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Shilpi Jain]

Liability under RCM will arise If such property is rented to a registered person..so the tenant is liable and not the landlord.

AI Summary

Reverse charge mechanism for rental services: tenant liability arises when the recipient is registered and supply is RCM liable.
Whether reverse charge applies to rent from jointly held property with one co-owner registered depends on supply character and recipient status: if both co-owners are suppliers, the registered co-owner need not separately pay RCM on his share; if the tenant is a registered person and the supply is RCM-liable, the recipient (tenant) must discharge tax under RCM rather than the landlord.