22 January 2019
Good Morning All Expert, Please help me about this query We hired a security agency named assumed ABC Securities. Sir at the time of Diwali Festival our company give some amount 14000 ie we can say that Bonus, Reward to ABC Securities Employee (500 PER SECURITY EMPLOYEE BEHALF OF US). Sir ABC Securities gives us bill @ 14000 behalf of this . Sir just wanted to knew that 1-Will Gst charge on this amount @ 14000 ie Bonus Amount 2-Will we deduct Tds on that Amount
23 January 2019
Sec15(2)(b) of the CGST Act which says Taxable value includes "any amount supplier is liable to pay but which has been incurred by the recipient." Based on your query it seems like the transaction will fall under the above category and GST is applicable. Hence the company will also liable for TDS . Also note that w.e.f. 01.01.2019, RCM on Security Services has been introduced in GST vide Notification No. 29/2018-Central Tax (Rate) dated 31.12.2018 if the security service provider is any person other than a body corporate.
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