Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Is GST applicable for consultants working for a Indian subsidiary company.

Save Share

This query is : Resolved

Ganesh M (Querist)
Follow

08 September 2023 My employer is a software company, an Indian subsidiary to a foreign company. They provide software services to the foreign company. We are hired as a consultant for a 1 year (fixed period of time) and the salary is fixed per month. It is fixed contract and there is a notice period, NDA etc as part of contract. We don't need to raise invoice. Company will pay every month after deducting 10% TDS.

In this scenario, Since we are working as consultant, Do we need to pay GST. Company says, there is no GST applicable as it is fixed term contract.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

08 September 2023 Since you are working as a consultant with 10% TDS deduction under section 194JB, if your payment in a year exceed 20 lacs GST applicable.
You have to raise tax invoice with GST and register with GST.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!