ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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rent
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return
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rate of return
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risk
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Detailed explanation-1: -An acquisition fee is a fee you pay when leasing a car or other types of vehicles. It may also be referred to as the assignment fee, administrative fee or origination fee.
Detailed explanation-2: -When you rent out a residential property for residential purposes, it is exempt from GST. Any other type of lease or renting out of the immovable property for doing business would attract GST at 18%, as it would be treated as a supply of service.
Detailed explanation-3: -An owner has to pay an income tax under section 24 of the Income Tax Act under the heading of ‘Income from House Property’. The rental from vacant land will be taxed under the head ‘ Income from other sources’.
Detailed explanation-4: -Ans. GST 18% on rent on commercial property is payable by the registered service provider (i.e. landlord). There is no reverse charge mechanism applicable in case of GST on rent on commercial property.