gst rate for employee recovery

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..... gst rate for employee recovery
Query (Issue) Started By: - Madhavan iyengar Dated:- 20-2-2019 Last Reply Date:- 23-2-2019 Goods and Services Tax - GST
Got 8 Replies
GST
A Company recovers from its employees ₹ 500 per month per employee towards bus transportation Query: What is the GST rate to be applied on the bus amount recovery is the rate of tax to be applied on basis of bil .....

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..... l received from bus contractor @12% or we need to charge GST@18% being general service rate Reply By Ganeshan Kalyani: The Reply: in my view, 18%. Reply By KASTURI SETHI: The Reply: Sh.Ganeshan Kalyani Ji,. How you justify 18% rate ? For enrichment of my knowledge pl. Reply By Ganeshan Kalyani: The Reply: Company is providing a support service to the employee and therefore it cannot charge 1 .....

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..... 2%. the applicable rate for support service is 18%. Reply By KASTURI SETHI: The Reply: Dear Querist, Here is not the issue of business support. service. In my view, this activity/supply of service is covered under HSN 9964 (vi) attracting GST @ 5%/12%. However, if you feel any doubt, you may opt for filing Advance Ruling Application. For the time being, you can pay GST at higher rate under prot .....

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..... est to avoid time bar limit. Otherwise also normally AAR takes the decision within in stipulated period. Reply By Ganeshan Kalyani: The Reply: Sir, company is not in the line of providing bus service therefore i took a view that it tantamount to support service . Reply By Madhavan iyengar: The Reply: kasturiji and kalyaniji thanks for your valuable guidance and inputs, what happens if there wa .....

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..... s no recovery ie bus service was free of cost should employer discharge gst on the entire billed amount by the bus service provider ( employer employee being related party) ? Reply By KASTURI SETHI: The Reply: It is a hypothetical question. It depends upon the nature of the contract. Who is service provider and who is service receiver ? Normally perks, amenities, various allowances are treated a .....

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..... s part of salary given to the employee by employer. (No GST on salary). . If it is so, liability to discharge GST is cast upon the employer. Reply By Ganeshan Kalyani: The Reply: I agree with the views of Sri Kasturi Sir.
Discussion Forum - Knowledge Sharing .....

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