On November 7, Allen L-S wrote in and asked on the following:
Do we have to pay 6% GST on Legal, Loan agreement & Stamping on residential property? What i know is buying residential is no need pay 6% GST. Just curious on that.
We wish to clarify that 6% GST on legal fees and loan agreement (including disbursement) is chargeable as services rendered notwithstanding that the property is commercial or residential. Meanwhile stamp duty is payable to the Inland Revenue and it is not subjected to GST.
If company( turn over more than 500k) buy residential property have to pay GST?
Pursuant to GOODS AND SERVICES TAX (EXEMPT SUPPLY) ORDER 2014, Residential property is an exempt supply hence GST is not chargeable.
FIRST SCHEDULE [Subparagraph 2(1)]
SUPPLY OF GOODS DETERMINED AS AN EXEMPT SUPPLY
- Any land used or intended to be used to the extent of it being used or intended to be used for residential or agricultural purposes, or general use.
Thanks!