A HUF consisting of Father and son owns a commercial property. It is let out to a firm in which son is a partner (75%) share, with third party. HUF is not registered under GST.
Due to financial problem in the firm, the landlord agrees to waive off rent for few months. My query is whether the firm and landlord will be treated as related parties, quantum of rent fixed can be questioned and whether RCM tax is still payable even though rent is waived off by the landlord.
Hindu Undivided Family's Rent Waiver: Related Parties and GST Implications Under Reverse Charge Mechanism A Hindu Undivided Family (HUF) comprising a father and son owns a commercial property rented to a firm where the son holds a 75% partnership. The HUF is not registered under GST. Due to financial issues, the landlord waived the rent for several months. The query concerns whether the firm and landlord are considered related parties, if the rent amount can be questioned, and whether Reverse Charge Mechanism (RCM) tax is applicable despite the rent waiver. The response clarifies that the firm and HUF are related parties due to the son's control, and GST is payable on market value under RCM since the HUF is not GST-registered. (AI Summary)
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