is gst applicable on reimbursement of salary

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if an agent is providing service and he is paying salary to a person on behalf of the company for providing his service to the company and the company reimburse the salary portion to agent, then is GST applicable to that portion of reimbursement of salary
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Originally posted by : Pinal Rawal
if an agent is providing service and he is paying salary to a person on behalf of the company for providing his service to the company and the company reimburse the salary portion to agent, then is GST applicable to that portion of reimbursement of salary

No.
No...

GST will not be applicable on reimbursement of Salary...

GST is not applicable only when a person reimburses as a pure agent. Since in this case there is no pure agent concept, therefore gst is applicable on salary reimbursement.

For the purposes of this rule, the expression “pure agent” means a person who- 

(a) enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both;

(b) neither intends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply;

(c) does not use for his own interest such goods or services so procured; and

(d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account.

As correctly mentioned by Mr. CA Shivam Arora


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