Hello all,
I am working as a contractor in a factory from last 10 years and now the factory is sold to another company due to no work and our services has been terminated from immediate effect. So we plead to the old management about the problems we will face & hence the management decided to reimburse the retrenchment compensation payable for the employees employed by us for execution of contract service. The management is asking us to give a bill of supply or anything but not a tax invoice under GST, as according to them GST is not chargeable on the reimbursement of retrenchment compensation on closure of work. (reimbursement will be as per actuals). However the company has deducted TDS u/s. 194C on such reimbursements.
My query is: - 1) Whether the management is correct and should i raise a voucher or any other document in lieu of payment receiveable? 2) Whether this amount will form part of my GSTR3B & GSTR1? a) if yes then where to show it? or b) If no then there will be mismatch between my GSTR & Form 26AS & ITR?
Please reply at an earliest.
Thanks & Regards.
CAclubindia
