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gst on secondment of employees

Sahil Arora (19 Points)

06 July 2018

Please advise whether GST is applicable on secondment of employees??

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9 Replies

CA Shivam Arora (Chartered Accountant) (2414 Points)
Replied 06 July 2018

To give the answer we should know the type of secondment agreement entered into.

Sahil Arora (19 Points)
Replied 06 July 2018

secondment is on cost to cost basis

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 06 July 2018

Once again, it's not understand...
please elaborate your query again

Sahil Arora (19 Points)
Replied 06 July 2018

We have one employee at our company payroll but we have seconded him to another company. we are paying him salary and recovering the same amount i.e cost to cost no profit element. whether we have to charge GST on such invoice which we raise to other company.

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 06 July 2018

As per Your above said way Your company will give service to other company with Your employee...
Right...?!

If Yes, Then You ll raise service invoice with GST...

CA Shivam Arora (Chartered Accountant) (2414 Points)
Replied 06 July 2018

The service here is manpower supply service, so definitely GST is chargeable.

Sahil Arora (19 Points)
Replied 06 July 2018

but we are working here as a pure agent as there is no element of profit

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 06 July 2018

Originally posted by : Sahil Arora
	but we are working here as a pure agent as there is no element of profit

If You are not supplied the Labour from Your company and You are not give service then "What is Your Exact activity in this Transaction...?"

In case the Labour volundarily going to work and receive wages / Salary from other company then You don't want treat it Supply.

CA Shivam Arora (Chartered Accountant) (2414 Points)
Replied 06 July 2018

Originally posted by : Sahil Arora
	but we are working here as a pure agent as there is no element of profit

Here the conditions of pure agent are not satisfied. There should be a main service for which some other service/goods are required which can be entered into as pure agent. Here there is only 1 service i.e. manpower service.