gst rate for employee recovery
Query (Issue) Started By: – Madhavan iyengar Dated:- 20-2-2019 Last Reply Date:- 23-2-2019 Goods and Services Tax – GST
Got 8 Replies
GST
A Company recovers from its employees ₹ 500 per month per employee towards bus transportation
Query: What is the GST rate to be applied on the bus amount recovery is the rate of tax to be applied on basis of bill received from bus contractor @12% or we need to charge GST@18% being general service rate
Reply By Ganeshan Kalyani:
The Reply:
in my view, 18%.
Reply By KASTURI SETHI:
The Reply:
Sh.Ganeshan Kalyani Ji,. How you justify 18% rate ? For enrichment of my knowledge pl.
Reply By Ganeshan Kalyani:
The Reply:
Company is providing a support servic
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ply:
kasturiji and kalyaniji thanks for your valuable guidance and inputs, what happens if there was no recovery ie bus service was free of cost should employer discharge gst on the entire billed amount by the bus service provider ( employer employee being related party) ?
Reply By KASTURI SETHI:
The Reply:
It is a hypothetical question. It depends upon the nature of the contract. Who is service provider and who is service receiver ? Normally perks, amenities, various allowances are treated as part of salary given to the employee by employer. (No GST on salary). . If it is so, liability to discharge GST is cast upon the employer.
Reply By Ganeshan Kalyani:
The Reply:
I agree with the views of Sri Kasturi Sir.
Discussion Forum – Kn
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