Rajiv (Senior Accounts Officer) (1548 Points)
22 January 2019Good Morning All Expert,
Please help me about this query
We hired a security agency named assumed ABC Securities. Sir at the time of Diwali Festival our company give some amount 14000 ie we can say that Bonus, Reward to ABC Securities Employee (500 PER SECURITY EMPLOYEE BEHALF OF US). Sir ABC Securities gives us bill @ 14000 behalf of this .
Sir just wanted to knew that
1-Will Gst charge on this amount @ 14000 ie Bonus Amount
2-Will we deduct Tds on that Amount
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4515 Points)
Replied 22 January 2019
Dear Sir,
Where it is part of agreement to provide such bonus, it could be construed as part of security service provided. GST would be leviable, and accordingly TDS provisions would apply.
Where it is only a cash payment made directly to such persons (not part of agreement with ABC), bill need not be given by ABC, and GST and TDS would not apply.
Also, from 1st January 2019 - Security personnel services are liable under RCM, please refer notification 29/2018-CT(R) dated 31-12-2018.
Rajiv
(Senior Accounts Officer)
(1548 Points)
Replied 22 January 2019
| Originally posted by : CA Akshay Hiregange | ||
 |
Dear Sir, Where it is part of agreement to provide such bonus, it could be construed as part of security service provided. GST would be leviable, and accordingly TDS provisions would apply. Where it is only a cash payment made directly to such persons (not part of agreement with ABC), bill need not be given by ABC, and GST and TDS would not apply. Also, from 1st January 2019 - Security personnel services are liable under RCM, please refer notification 29/2018-CT(R) dated 31-12-2018. |
 |
Sir Is Gst will be applicable on bonus ? Employee Employer relationship .
Tds will be also applicable on Bonus under income tax ?
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4515 Points)
Replied 22 January 2019
Dear Rajiv,
Employer (ABC) - Employee (security) - Bonus given by employer to employee in course of employment, will not be liable to GST. Refer Schedule III CGST Act.
TDS in my opinion would be liable even of the Bonus value, although hope Direct Tax expert would respond if any variations in my answer.
Thanks Mr. Sanjiv
Rajiv
(Senior Accounts Officer)
(1548 Points)
Replied 22 January 2019
| Originally posted by : CA Akshay Hiregange | ||
|
Dear Rajiv, Employer (ABC) - Employee (security) - Bonus given by employer to employee in course of employment, will not be liable to GST. Refer Schedule III CGST Act. TDS in my opinion would be liable even of the Bonus value, although hope Direct Tax expert would respond if any variations in my answer. Thanks Mr. Sanjiv |
|
THAN SIR WHAT IS YOUR OPINION REGARDING GST ON THIS BILL 14000
APPLICABLE OR NOT ADDED BY ABC SECURITY ?
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4515 Points)
Replied 22 January 2019
Rajiv please refer my first reply to your query.
Where bonus given by you(3rd party) and not the security agency(employer), then we cannot apply employer employee concept.
CAclubindia
