One of our private limited company's employee whose being director, was demised last month, and company owner has decided to give company car to his wife(legal heif of deceased employee), so there is leavy of GST at the time of given/transfer car ? if GST applicable then provide in details. please help
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Gst on car given to legal heir of deceased employee
Replies (5)
Yes , off course GST is applicable
Can you explain in details ? which value will be considered for GST?
Under GST law, employer and employee are considered to be related. Hence, in case of related party, the value would be determined as per the valuation rules provided under the CGST Rules.
However, it could be argued in the instant case that the payment is not made to the employee on account of following reasons:
1. After the death of the employee, the employment agreement terminates
2. Car is given to the employee's wife who is not a related party under the GST law.
Therefore, in absence of any consideration, it could be agrued that no GST should be payable in the instant case.
Please feel free to connect, if you require any further clarification.
Regards,
Nirav Worah
9819532900
Thank you sir !! that means we do not required to pay GST.
NO THAT MEANS U HAVE TO DEPOSIT GST
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