GST on employee expenses

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..... GST on employee expenses
Query (Issue) Started By: - Dhruv Dua Dated:- 4-1-2019 Last Reply Date:- 7-1-2019 Goods and Services Tax - GST
Got 6 Replies
GST
Company A reimburses employees for the expenses incurred by them in the field (airfare / travel etc). Some of the invoices are in the personal name of the employee and some in the name of the company. Whether Company A is required t .....

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..... o pay reverse charge on applicable reimbursements (employee pays to Goods transport agency for shifting of goods for example) ? Reply By KASTURI SETHI: The Reply: Yes. Simply explaining who bears freight expenses will pay GST under RCM. The employee is paying to GTA for and on behalf of the Company. The Co.is reimbursing to the employee. The Co.is bearing freight expenses. So the Company is requ .....

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..... ired to pay GST on freight amount under RCM. Reply By Dhruv Dua: The Reply: Thank you very much for the clarification. I believe the same view will hold for purchase from unregistered dealers, paid by employees, reimbursed by the company(if and when RCM becomes applicable on purchases from URD) ? Dhruv Reply By KASTURI SETHI: The Reply: Yes. You are right. Reply By DR.MARIAPPAN GOVINDARAJ .....

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..... AN: The Reply: I endorse the views of Sri Sethi. Reply By Abhishek Sethi: The Reply: Company's policy shall be relevant in such cases to determine as to whether the Company has incurred such expense or has merely paid to employee an amount in nature of fixed reimbursement (which may or may not be equivalent to transporter's Invoice). Additionally, if it is accepted that expense is inc .....

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..... urred by Company - then what shall be treatment of such expense for Income Tax purposes? TDS on transportation charges? Kind regards, Abhishek Reply By Mahadev R: The Reply: I concur with Mr.Kasturi Sethi
Discussion Forum - Knowledge Sharing .....

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