Goods and Services Tax – Started By: – AnilKumar Vyas – Dated:- 2-4-2018 Last Replied Date:- 4-4-2018 – Dear Experts,Please suggest, Is GST Applicable on following transactions: Payment to Employee for Vehicle running and maintenance charges at fix rate (example INR 8/- per KM) (Not part of Employee agreement and Salary offered) Example: We are paying INR 8/- per KM to X. during the month vehicle run 3,750 KM, Total amount paid INR 30,000/- Is company liable to pay GST on these reimbursement under RCM for supply from unregistered dealer? Payment to Employee for Vehicle petrol expenses at fix (Example 4,000/- per month) (It is part of salary offered but company separately paying for get income tax exemption by employee) Example: Mr. X month
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………… – Reply By KASTURI SETHI – The Reply = Query-wise reply is as under:-1. No doubt these fixed expenses are not part of salary or employee agreement but these are provided on account of performing duty or we say when employees are performing duties in the employment. Therefore we can say that these fixed amounts are provided in the course or in relation to employment and hence are out of the purview of GST/definition of supply.2. Not taxable, it being in the course or in relation to employment.3. It is taxable on the following grounds:-(i) it being in the course of business or in furtherance of business. (ii) It is supply of goods to the Company(employer), ultimate recipient of goods via employee. It is possible that that supplie
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rse of employment.2. Regarding point no3 .. there may be problem in claiming ITC if only cash memo is there, since gstn of reciepient company is not there. – Reply By KASTURI SETHI – The Reply = Sh.Shukla Ji, Sir, Regarding query No.3, I agree with you. Regarding query no. 2 Yes. This is my view. – Reply By Ganeshan Kalyani – The Reply = 1. There is employer employee relationship so GST is not applicable. However, the same is not forming part of employment agreement and hence it may become taxable in the hands of the employee. But since his/her turnover would be below the threshold limit (based on the amount reimbursed the amount will not cross ₹ 20 lacs). And moreover GST on inward supply of taxable goods or services from an unregist
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