Gst in employee and employer relationship

According to schedule 3 , GST is not levied when there is an employer employee relationship.
But, there is a provison that transaction between employer and employee is taxable only if it is greater than 50,000.
Aren't both contradicting?
Replies (3)
Quick Summary
This discussion explores the nuances of GST application within the employer-employee relationship. While Schedule III generally exempts services provided by an employee to an employer, a provision exists for transactions exceeding £50,000 to be taxable. Participants clarify that gifts are typically not part of the employment contract, unlike salary, and that Schedule III specifically covers employee-to-employer services, leaving room for ambiguity on employer-to-employee charges.

Gift is not given on account of employer and employee relationship whereas salary is given on account of employer and employee relationship.

Thus, both provision are different in my view.

Agree with Amit. But please note, schedule III covers - services by employee to employer only (not vice versa).

That is why there is ambiguity in taxation of recoveries made by employer for services rendered by employer to employee.

 

Gift is not a part of employment contract (CTC)

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register