Service by way of renting of any immovable property other than residential dwelling.

[CABayyaReddy DK]

Sir, Now Service by way of renting of any immovable property other than residential dwelling is brought under RCM vide Notification No. 09/2024-Central Tax (Rate) dated: 8/10/2024.

Queries are

01. What if Commercial rental income is exceeds Rs. 20 lakhs per year?

02. What if commercial property landlord is a non - resident individual?

03. Liability to register in Karnataka for commercial rental Income is Rs. 40 lakhs or 20 lakhs?

Please advice

AI Summary

Reverse charge on commercial rent: recipient pays GST when landlord is unregistered; registered or non resident landlords bear forward charge.
Commercial renting of immovable property is taxable and placed under the reverse charge mechanism (RCM) when a registered person receives the supply from an unregistered supplier; if the supplier is registered or is a non resident taxable person, the supplier bears tax under forward charge. Registration is required when aggregate turnover exceeds the statutory threshold, and non resident taxable persons must register irrespective of turnover.