DEPUTATION OF SALARIES, Goods and Services Tax - GST

[Kusalava InternationalLimited]

Is GST applicable on Deputation of Salaries of Sister Company employees?If applicable what is the Rate?

Posts / Replies

[KASTURI SETHI]

Salary is not subject to GST whether on deputation or on regular basis. Employer-employee relation does not lose its status during deputation. During deputation an employee works on behalf of his employer.

[Ganeshan Kalyani]

The employee remain on roll of the company during deputation and hence GST is not applicable on employer employee relationship.

[CS SANJAY MALHOTRA]

If you recover salary of your employees from your sister concern then GST applicable as employer employee relation does not exist.

[Brijesh Verma]

Recovery of salaries from sister concern (for the deputation period) will be a supply of services (just like manpower supply services). There is no employer-employee relationship between the companies. The fact that deputies are an employee of one company and are having an employer-employee relationship with that company would not alter taxability of such transaction.

[YAGAY and SUN]

Doubtful if the GSTIN is same.