reimbersment of expenses

14 September 2017

i have paid the a some of amount to our employee as a reimbersment of expenses.
so the expenses are applicable for gst tax or RCM tax.

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3 Replies

Michelle (Service) (297 Points)
Replied 14 September 2017

GST is applicable only on supply of goods or services. Reimbursement of expenses falls in neither of the category

Santosh V. Thakur (Sr. Accountant) (187 Points)
Replied 14 September 2017

Some EXEMPT expenses related to employee under RCM as follows

1.Salaray, wages & bonus paid to employee

2. Conveyance Expense - Non AC Taxi, Auto, Bus, Train

pl. note other than above, all expenses related to employee is taxable under RCM

Chhatra Singh Dugar (1464 Points)
Replied 14 September 2017

You tell for what services you are reimbursing your employees. On that basis you can be advised whether RCM is applicable or not.

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