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salary & wages

Love Wadhwa (B.Com) (46 Points)

08 June 2018

Is there any limit after gst to distribute salary and wages in cash, can we distribute salary and wages (approx 10 lac to 100 employee and labour) in cash.

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Vaishali Jain (Currently working on improving my skills) (2539 Points)
Replied 08 June 2018

Dear Sir,
as per Schedule III of CSGT Act 2017, services provided by an employee to his employer, in relation to or in the course of his
employement are outside the preview of GST.

but,

Acc to prov. of sec - 40A(3) of IT act any expenditure incurred by an assessee, in relation to which payment or aggregate of payment made, exceeding 10000/-, to a single person in a day, otherwise than by way of account payee cheque, demand draft or ECS, then the same shall be disallowed.
hence it would be preferable to not to pay the amount exceeding Rs. 10000/- in cash

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