TMI Blog2018 (10) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... below the threshold limit under GST. By mere joining of hands of two or more persons, a different and distinct legal entity or legal personality does not come into existence, unless there is an intention to do so. A co-owner holding immovable property jointly with other co-owners, but receiving lease rent separately, in proportion to his share in the property, is eligible for the benefit of threshold exemption. There is also Judicial pronouncement under Service Tax that clubbing of rent amount received by each co-owner, as per their share in jointly owned rented property, is not permissible - refer case ANIL SAINI, KABAL SINGH, NEELAM SAINI, SURINDER KAUR, JASWINDER SINGH, PARMOD KUMAR CHAUDHARY, SUKHJEET JODHA VERSUS CCE, CHANDIGARH-I [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lect and distribute rent among all the owners for administrative convenience will have any implication on the business exemption under Section 22 of the GST Act for individual co-owners. The authorized representative was heard. He has stated that under GST scenario renting of immovable property is defined as supply of service attracting 18% GST. But, as per Section 22 of the GST Act, a supplier is exempted from registration, if his aggregate turnover is not exceeding ₹ 20 Lakhs in a financial year. Co-ownership of the property is for financial, administrative and family reasons. In such cases, a property may be divided by metes and bounds or there can be proportionate ownership of each owner. As per the provisions of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d exemption. There is also Judicial pronouncement under Service Tax that clubbing of rent amount received by each co-owner, as per their share in jointly owned rented property, is not permissible. [ 2017 (51) STR 38 (Tri.-Chan)] = 2017 (1) TMI 101 - CESTAT CHANDIGARH . The co-owners jointly owned immovable property and rented out these properties to different parties. Co-ownership of the property is for financial, administrative and family reasons. The rent is collected from all the parties together and divided equally and transfered to the bank account of each co-owner. If the individual receipts of a co-owner from all his business, including renting of immovable property , exceeds ₹ 20 Lakhs in a financial year, the respecti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
