Conclusion – The aforementioned payment would also be covered by the lease agreement and would attract GST. Property owners who have leased their commercial real estate under holiday licensing agreements are not exempt from this crisis. We have come across many cases where the tenant or licensee has asked the landlord or licensor to reduce the rental/license fee, or even waive the rent altogether. In this brief article, we have tried to answer some of the most frequently asked questions about the effects of GST from the licensor/lessor`s perspective: a vacation and licensor agreement is a legal agreement that the licensor grants interim/periodically to the licensee in order to exploit and retain static ownership of the licensor in whole or in part. for the purpose of carrying on an activity that is otherwise used for residential purposes. In the absence of a revised/reduced rent agreement, the licensor may charge the royalties agreed in the Leave license agreement. It is not necessary to indicate that the GST must be filed on due dates. 2. CERTIFICATE OF ADDRESS: Commercial leave and license agreement are authentic proof of your Private Limited/LLP/or an entity other than the registered office. 4. DEDUCTION OF BUSINESS INCOME: auditor / CA can apply for a leave and license contract for the authentic deduction of business income. Vacation and license agreement mention a specific clause regarding rent, so it will help you in case of withdrawal of rent from business income. In order to pay stamp duty on the contract of sale, in accordance with section 3 of the Indian Stamp Act, 1899, a credit may finally be issued if the rent is not paid by the licensee, which is himself issued on the basis of the justification that the premises were not occupied during the blackout period, so the rental service was not provided at all.
In practice, the division cannot oppose such a situation, since it was outside the control of one of the parties. From our personal point of view, the licensor should issue a credit on the difference if the full invoice was made earlier. Here too, the „Force majeure“ clause of the holiday permit contract can be protected The electricity consumption of production services and INFORMATION TECHNOLOGY units is quite high. Therefore, the electricity bill of these companies is also particularly high. Given the assertion that GST applies to real estate for commercial rent (buildings, factories, etc.), leave and licensing agreements are concluded and processed correctly by companies. However, the opinion on the applicability of the GST to the amount of electricity paid by the tenant under the lease agreement is not requested at the time of the lease. A holiday and licensing agreement is an agreement by which the licensor authorises the licensee to use and temporarily use part of the land for the exercise of its activities or accommodation. It could be a contentious case. For legal reasons, it can be said that the licensee has not been able to use premises, so the service has not been provided, whether due to circumstances that are not controlled by the licensor or otherwise, is another matter. The fact remains that the licensee was unable to benefit from the service, so that the provision of the licensor`s services was sterile.
. . .