A is a labour contractor . A provide labour service to B at the time of making invoice B says don't charge GST on amount of ESI and PF . but Agree to Pay ESI and PF separately. And B also says show ESI and PF amount in invoice without changing GST . Is this transaction is valid . and why
please clarifying this
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reimbursement in gst
Replies (12)
This mechanism can be justified using pure agency concept provided in Rule 33 of CGST Rules .
Alos, recently decided case law of Intercontinental Technocrats under service tax supports this view that reimbursable expenses should not suffer tax again.
this transaction is reimbursement or disbursement
Sir
as per notification 2 Ct , supplies of labour to govt concern is exempted , so if we B is govt concern its exempted,.
morever the reimbursement of expenses is In case if he Falls under defination of Pure Agent
As per notification 2 ct rate , supply of labour to govt is exempted, so i assume B is Govt concern,
as its disbursement not reimbursement so it does not fall under the definatiion of pure agent
sir
i think Esi , pf is exempted in Gst, so no GST , & Mr ranjneet is right its disbursement, not reimbursement, so does not fall under pure agent
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11uiiio
11uiiio
As ESI, PF is exempted under GST, so no gst on that, Mr.Ranjeet is Correct its Disbursement, not a reimbursement , morever it does not fall under defination of pure agent
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PF, ESI is exempted in gst, & mr ranjeet is correct its disbursement not reimbursement
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