Hiring personnel

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COMMERECE KNOWLEDGE

ACCOUNT MANAGER

54 Points Posted on 21 June 2017

Hello Teammates,

We are doing work of Placement Consultancy. Our staff is below 10 and the personnel we recruit at our clients place is around 100.

My questions are:

1. What would be effect of GST on salary we provide under:

a). Manpower Recruitment

b). For our own staff.

2. Is manpower recruitment liable to get registered under PF, ESIC after GST coming into effect?

3. Is it better to charge as professional fees, as its short term contract for Manpower Recruitment?

4. Is the portion of PF, ESIC liable for GST?

5. What components are to be included as Over and above CTC for GST calculations on salary?

Also share any other point if important, related to this topic for guidance.

Replies (8)

Gaurav Palta

324 Points Posted on 21 June 2017

There is no GST on salary payment to employees.Employer employee relationship is not a supply.

Gaurav Palta

324 Points Posted on 21 June 2017

However in case you provide manpower recruitment consultancy to outsiders it amounts to supply and amount of consultancy charged is liable to GST. You are liable only if turnover exceeds 20 lacs.

COMMERECE KNOWLEDGE

ACCOUNT MANAGER

54 Points Posted on 22 June 2017

Thanks for your reply.

GST is applicable over and above CTC >50000 to employer employee relation also.

I am asking particularly for employees on manpower recruitment, whether it is included in employer employee relationship? Most probably, it should not.

If on manpower recruitment 18% GST is applicable, will it attract PF, ESIC?

Reply awaited.