Tax Management India. Com
                        Law and Practice: A Digital eBook ...
TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 
Discussions Forum
Home Forum Goods and Services Tax - GST This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

← Previous Next →

GST ON REIMBURSEMENT OF MANAGEMENT EXPS, Goods and Services Tax - GST

Issue Id: - 116777
Dated: 6-10-2020
By:- tejas kulkarni
GST ON REIMBURSEMENT OF MANAGEMENT EXPS

  • Contents

IS GST CHARGEABLE ON REIMBURSEMENT OF MANAGEMENT EXPS i.e. salary , maintainance exps.etc . if yes under which head of service.?

please Guide.

Post Reply

Posts / Replies

Showing Replies 1 to 7 of 7 Records

1 Dated: 7-10-2020
By:- Rajagopalan Ranganathan

Sir,

In my view it is a composite supply of service. According to Section 2 (30) of CGST Act, 2017 "“composite supply” means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;

Illustration. - Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply.

Therefore you have to classify and pay tax on the basis of principal service.


2 Dated: 7-10-2020
By:- Ganeshan Kalyani

Sir, can you please elaborate your query.


3 Dated: 7-10-2020
By:- KASTURI SETHI

As per Rule 33 of CGST Rules, if amount has been incurred as pure agent then the same is to be excluded from the transaction value to arrive at taxable value. Since you have not mentioned what is service, what is your marketing pattern etc., it is not possible to give a fool-reply. Your query needs further elaboration as pointed out by Sh.Ganeshan Kalyani Ji.


4 Dated: 7-10-2020
By:- tejas kulkarni

the co operative society provides manpower supply service to sugar factory. It pays to contractors for rendering of farm labour for service of sugarcane cutting. For all this service it raise invoice to sugar factory.

However the society has its own management expences like salary , admin exps of society like medical exps of labours etc. All these exps are also reimbursed by sugar factory. Hence society's profit and loss A/c shows no profit no loss.

My querry is under which head of service such reimbursement of management exps are chargeable under GST.?


5 Dated: 7-10-2020
By:- Ganeshan Kalyani

Sir, in my view, the management expense is also taxable as it would amount to service provided by your society to the sugar factory.


6 Dated: 8-10-2020
By:- KASTURI SETHI

Chapter/Heading/Sub-heading No. is 998311. It is a composite supply. Principal supply is manpower supply. So GST Rate and Heading of Principal supply will apply. It is taxable. After elaboration of your query, I support the views of both experts. Read Section 15 (2) (b) & (c) of CGST Act carefully. No benefit of pure agent is available to you.


7 Dated: 18-10-2020
By:- YAGAY andSUN

We are in agreement with the replies as shared by our Experts.


1

Post Reply

← Previous Next →

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map || ||