10 July 2019
My office has outsourced an employee from an agency. Employee salary is Rs 20000/-. Service charge is Rs 200/-. The company bills us 20,200/- + GST @18% on 20,200/-. But one person is telling that bill should be Rs 20,200/-+ GST @ 18% on Rs 200/-. So please tell what is the correct procedure.
12 July 2019
GST is on supply. It would be purely depended on the agreement b/w your co. and the agency "whether to call a salary a pure agent(subj to all conditions) or a supply with service charge"
CAclubindia
