TMI BlogIssue related to taxability of ‘tenancy rights’ under GST- regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioners/ Principal Commissioner/Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: Issue related to taxability of tenancy rights under GST- regarding Doubts have been raised as to,- (i) Whether transfer of tenancy rights to an incoming tenant, consideration for which is in form of tenancy premium, shall attract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cy right of the said property and in such a case has to share a percentage of the proceed with owner of land, as laid down in their tenancy agreement. Alternatively, the landlord pays to tenant the prevailing tenancy premium to get the property vacated. Such properties in Maharashtra are governed by Maharashtra Rent Control Act, 1999. 3. As per section 9(1) of the CGST Act there shall be le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sfers of tenancy rights, and such transaction thus should not be subjected to GST, is not relevant. Merely because a transaction or a supply involves execution of documents which may require registration and payment of registration fee and stamp duty, would not preclude them from the scope of supply of goods and services and from payment of GST. The transfer of tenancy rights cannot be treated as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rights against consideration in the form of a portion of tenancy premium is liable to GST. 6. Difficulty if any, in the implementation of this circular may be brought to the notice of the Board. Yours Faithfully, Harsh Singh Technical Officer (TRU) Email: harshsingh.irs@gov.in - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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