Home Forum Goods and Services Tax - GST Month 4 2018 2018 (4) This
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APPLICABILITY OF GST ON PAYMENT OF ACTUAL WAGES THROUGH LABOUR CONTRACTOR - Goods and Services Tax - GSTExtract QUERY REGARDING GST APPLICABILITY ON PAYMENT OF WAGES TO INDIVIDUAL LABOURERS LABOUR CONTRACTOR PROVIDES WORKERS TO A FACTORY FOR MANUFACTURING OF GOODS. HE IS ISSUING THE FOLLOWING MONTHLY BILLS TO THE FACTORY BILL NO.1 (APRIL 2018) Total Mandays Amount REIMBURSEMENT OF WAGES (ACTUALS WITH EMPLOYEE WISE DETAILS) 1664 670844 EPF EMPLOYER CONTRIBUTION (ACTUALS) 39969 ESI - EMPLOYER CONTRIBUTION (ACTUALS) 31866 TOTAL 742679 BILL NO.2 (APRIL 2018) Total Working Days Rate Amount CHARGES FOR PROVIDING LABOUR 1636 20 32720 (Total Mandays - Paid Holidays = Total Working Days) WHETHER THE CONTRACTOR IS LIABLE TO CHARGE GST ON BOTH THE BILLS OR WHETHER BILL NO.1 FOR REIMBURSEMENT OF ACTUAL WAGES, EPF AND ESI PAYMENTS WILL BE EXEMPTED FROM THE APPLICABILITY OF GST IN THE LIGHT OF SCHEDULE III (Section-7) ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES 1. Services by an employee to the employer in the course of or in relation to his employment. WHETHER THE LABOUR CONTRACTOR CAN BE CONSIDERED A PURE AGENT OF THE COMPANY AND REIMBURSEMENT OF ACTUAL WAGES, EPF AND ESI CAN BE CONSIDERED AS EXEMPTED FROM GST.
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