GST Applicability on Employee Reimbursement
Query (Issue) Started By: – AnilKumar Vyas Dated:- 2-4-2018 Last Reply Date:- 4-4-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Dear Experts,
\nPlease suggest, Is GST Applicable on following transactions:
\n * 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)
\nExample:
\nWe are paying INR 8\/- per KM to X. during the month vehicle run 3,750 KM, Total amount paid INR 30,000\/-
\nIs company liable to pay GST on these reimbursement under RCM for supply from unregistered dealer?
\n * Payment to Employee for Vehicle petrol expenses at fix (Example 4,000\/- per month) (It is part of salary <\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e reimbursement under RCM for supply from unregistered dealer? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nt no 1 if the arrangement is not part of employee agreement and salary offered, can it still be said to be in the course of employment. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST Applicability on Employee Reimbursement Query (Issue) Started By: – AnilKumar Vyas Dated:- 2-4-2018 Last Reply Date:- 4-4-2018 Goods and Services Tax – GSTGot 5 RepliesGSTDear 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 … Continue reading “GST Applicability on Employee Reimbursement”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-11244","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11244","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11244"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11244\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nThanks for your valuable suggestion ……………………
\nReply By KASTURI SETHI:
\nThe Reply:
\nQuery-wise reply is as under:-
\n1. 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.
\n2. Not taxable, it being in the course or in relation to employment.
\n3. It is taxable on the following grounds:-
\n(i) it being in the course of business or in furtherance of business.
\n(ii) It<\/p>\n
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\n2. Regarding point no3 .. there may be problem in claiming ITC if only cash memo is there, since gstn of reciepient company is not there.
\nReply By KASTURI SETHI:
\nThe Reply:
\nSh.Shukla Ji,
\n Sir, Regarding query No.3, I agree with you.
\n Regarding query no. 2 Yes. This is my view.
\nReply By Ganeshan Kalyani:
\nThe Reply:
\n1. 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<\/p>\n
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