sir,
We have engaged a driver contractor to our compsny, he will supply manpower for delivery of goods from one place to other place.
We are the responsible person to allocate duty to driver, we are having full rights on driver during his duty time.
contractor will claim salary, PF and ESI for driver based on his duty performed during the month.
in addition to that contractor will charge 10% service charges.
rightly contractor charging 18%GST on his total invoice value including drivers salary, PF and ESI.
we know that the salary will be transfer to drivers account without taking any commission by contractor, so it's purely reimbursement of expense by contractor.
kindly let me know any possibility to avoid GST on salary part? or possibility to reduce GST outflow in this regard.
we are spending around 50l (GST ONLY) per year in this regard.
please suggest.
note:
1)we are from agriculture industry so we unable to any ITC
2) contractor is a registered individual.
CAclubindia
