Transfer of tenancy rights to a new tenant against consideration in
the form of tenancy premium is taxable. However, renting of residential dwelling for use as a
residence is exempt [Sl. No. 12 of notification No. 12/2017-Central Tax(Rate)]. Hence, grant of
tenancy rights in a residential dwelling for use as residence dwelling against tenancy premium or
periodic rent or both is exempt. As regards services provided by outgoing tenant by way of
surrendering the tenancy rights against consideration in the form of a portion of tenancy premium
is liable to GST.
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