if an employee make a reimbursement sheet for traveling, conveyance, telephone-mobile etc. which was incurred by him during completion his employment.
Is GST payable under RCM u/s 9(4)?
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GST on reimbursememt to employee
Replies (15)
Yes..GST is payable under sec9(4).
If all exp from urd less than 5000/ including that of employee in a day, no need to pay GST
see schedule III. GST not applicable.
Yes.
GST also applicable under RCM basis... If the company's expenses less than 5k in a day also include the amount then don't be calculate tax under RCM.
GST also applicable under RCM basis... If the company's expenses less than 5k in a day also include the amount then don't be calculate tax under RCM.
The expenses incurred by the employee are clearly in furtherance of business. However some of them maybe GST paid like mobile where if were to provide the GST no if employer subject to POS eligible for credit. For exempt supplies like auto which are not liable for GST can be segregated. For the rest GST would be liable under RCM subject to Rs.5000/- limit per Registration per day. If exceeded then whole amount of rest will be liable.- State registration wise.
The expenses incurred by the employee are clearly in furtherance of business. However some of them maybe GST paid like mobile where if were to provide the GST no if employer subject to POS eligible for credit. For exempt supplies like auto which are not liable for GST can be segregated. For the rest GST would be liable under RCM subject to Rs.5000/- limit per Registration per day. If exceeded then whole amount of rest will be liable.- State registration wise.
Yes. You said exactly correct Mr. Madhukar N Hiregange....
if bill is in the name of employee it will make any difference?
@ Ravi G.,
If bills in employee name then it's not account in company's book.....
If bills in employee name then it's not account in company's book.....
@ Ravi G.,
If bills in employee name then it's not account in company's book, I am not agree with you, reimbursement is not applicable without other party name
If bills in employee name then it's not account in company's book, I am not agree with you, reimbursement is not applicable without other party name
Dear Sir
1. In case of pharma industry employees are paid per diem allowance for travel ( sales team). It is paid on per km basis and paid based on travel statement.
2. Employees also buys some stationery from unregistered dealer and get it reimbursed
3. Employees also use cab services from unregisterd dealers and get it reimbursed from the employer.
Do you imply that all the above attracts RCM ?
@ Ram Prakash....
Expense REIMBURSEMENT is a method for paying employees back when they spend their own money on business-related expenses. These expenses generally occur when an employee is traveling for business but can occur in other work-related situations...
Please reply it.,
I'm your employee. You are the Employer/Accounts Manager...
I ll be given expense details to company on Travelling....
1. Fuel Ex - 1200
2. Food Ex - 800
3. Stationary - 500
4. Hotel Room - 2500
5. Meeting/Customers Ex - 5000
6. Transport/Auto/Train/Bus/Air Ex - 12000...
How to you booking Above said expentiture in your Accounts...?
What are the details you ll be collect from me...?
Which amount you ll given back...?
There is scope of plnning :
1. Payments in the nature of Allowances to the employees shall not be taxable under gST,
2. Reimbusements as per the terms of employment may also not be taxable under GST,
3. Purchases or services taken exclusively for Company shall be treated as per the opinion of the learned experts given above
Even if bill is not in the name of Company but service was taken on behalf of the Company exclusively the same may be entered in appropriate GSTR
In the modes of supply meantioned, it doesn't include reimbursement, how to treat the same a a taxable supply.
In recent goventment Tweets they said that employee reimbursement is not TAXABLE, however there are Instances that tweets went wrong, how to go about this
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