Home/NRI/I am an NRI planning to buy a property in India which would be rented for residential purpose. So while buy the property can I register myself for GST number and obtain GST return benefit on the GST tax paid during the deal?
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I am an NRI planning to buy a property in India which would be rented for residential purpose. So while buy the property can I register myself for GST number and obtain GST return benefit on the GST tax paid during the deal?
When you rent out residential property, then the income generated from such property is taxable under the ‘income from house property’ head. First, you will have to find out your property’s annual value—which will be higher than the actual rent received for the particular property or standard rent the property might get. All the municipal taxes that you pay during the year will be allowed as a deduction. Plus, a deduction of up to Rs.200000 is allowed towards the interest that you have to pay on any home loan taken for that particular property and a standard deduction at 30 percent of the annual value is allowed towards maintenance and repairs. These are the NRI buying property in India tax implications.Can NRI Apply for GSTI want you to know that you can submit an application for GST registration online using the FORM GST REG-09 along with your valid passport’s self-attested copy.Can NRI claim GST refundAn NRI’s tax benefits are similar to an Indian resident. An NRI is entitled to every tax benefit regarding property purchase that an Indian resident is.Take the help of NoBroker’s NRI Services and Buy Your Dream Property EasilyRead more:Can NRIs purchase agricultural land in India?How can NRIs purchase a property in India?I hope you like my answer on “NRI buying property in India GST benefits.”
Here, I will tell you about the NRI buying property in India tax implications. There is now a single
pan-Indian GST regime in place as of July 1, 2017, replacing the country's previous dual-taxation
structure of state and central levies. Fees levied on remittance recipients have risen from 15% to 18%
under the new system in effect. Questions like Can NRI claim GST refund and Can NRI apply for GST
are frequent ones among the NRIs.
Since the GST laws increased the tax from 15% to 18%, NRIs with saving non-resident ordinary rupee
(NRO) or non-resident rupee (NRE) accounts at any Indian bank must incur a tiny additional cost.
When it comes to the real estate market, while ready-to-move-in properties are exempt from GST,
under-construction properties have seen a rise in tax from 12% to 18%. There's also a GST tax credit
for raw material purchases that the developer will pass on to the buyer. Thus, now you know about
the NRI buying property in India GST benefits.
GST or Goods and Services Tax has been a big reform by the Indian Government in the recent times.
Many people have questions like Can NRI claim GST refund and Can NRI apply for GST in their
minds. Here, I will try to resolve these queries allied to NRIs and GST. The NRI does not have to pay
GST on gold or other commodities when bringing them into India as baggage. NRIs may be eligible
for a GST return on purchases they made before leaving India, making their home country purchases
cheaper.
For the NRIs, the NRI buying property in India GST benefits are many. The renting out residential
property is excluded from GST, but commercial property attracts an 18% GST for everyone, even
Indians abroad who live in that country. Annual rent receipts above 2 million rupees are exempt from
the GST duty on commercial properties. I think now the NRI buying property in India tax
implications are clear to you.
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I am an NRI planning to buy a property in India which would be rented for residential purpose. So while buy the property can I register myself for GST number and obtain GST return benefit on the GST tax paid during the deal?
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July 3, 2021
2021-07-03T10:43:35+00:00 2021-07-13T15:44:09+00:00Comment
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