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2019 (12) TMI 165 - AAR - GSTClassification of services - security and scavenging services to the Government hospitals - whether classified under SAC 998525 or not - applicant makes separate bill for claiming the Bonus amount - levy of GST on such bonus amount - HELD THAT:- The security personnel engaged are at no point employees of the State Government. The Applicant can recruit, deploy, withdraw or replace any security personnel, provided the recipient is kept informed. It is not a manpower recruitment agency. The State Government is not recruiting any security personnel through the Applicant. The latter is the employer of the security personnel deployed and is responsible for paying all statutory dues, including employer's contribution to EPF, ESI etc. Employer's contribution to EPF, ESI etc. and payment of Bonus at the Government approved rate are, therefore, components of the Applicant's expenditure. It is entitled to pass this liability to the recipient, who, in terms of the Agreement, is apparently ready to bear that liability. Such an agreement, however, does not create a master and servant relationship between the recipient of the service and the security personnel. Payment received from the recipient on account of the bonus paid or payable to the persons deployed as security personnel is not, therefore, guided by Para 1 of Schedule III - Applicant is, therefore, liable to pay GST on the portion of the payment received on account of the bonus paid or payable to the persons it deploys as security personnel.
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