GST calculation on contract employee

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3 Points Posted on 02 February 2022

Dear all,

 

Can anyone please explain how do I calculate GST if i am providing say an accountant to a certain company for 6 months at a salary of 14000/month. My charges are 3000 total 17000/month billing. 

Usually we calculate 9+9 18% GST on one time basis.

But here is it calculated on 3000 or whole 17000?

How to calculate invoice?

Please answer asap 

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On 02 February 2022 at 22:31 Report
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Quick Summary
This discussion clarifies how to calculate Goods and Services Tax (GST) when providing contract employees. The consensus is that GST should be applied only to the service charges or your markup, not the entire salary paid to the employee. The example provided shows GST calculated on the £3000 service fee, resulting in a total bill of £17,780 including GST.

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GST Consultant
15986 Points Posted on 03 February 2022

GST calculation only on 3000 provided you do accounting correctly.

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On 03 February 2022 at 08:32
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Profession
28271 Points Posted on 03 February 2022
Whether it's a single calculation or a monthly calculation it is immaterial you hv to charge gst.
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On 03 February 2022 at 10:57
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3 Points Posted on 03 February 2022

Hi thanks everyone for your revert.

What about invoice structure?

Please correct me if i am wrong.

Salary 14000

P.TAX    200

Rec. Charges 3000

GST(c+s)        540

Total.       17,780/-

 

Is it?

 

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On 03 February 2022 at 11:01
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Chief Accountant
3150 Points Posted on 04 February 2022
R u disclosing salary which u r paying to person to that company ?

I think u r raising bill of 17000 than on total amount GST is applicable.
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On 04 February 2022 at 21:10

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