Is GST applicable on service bond amount?

There is no need for you to pay GST on the amount of the service bond. No gst applicable on service bond amount. Since such payment is part of the contract of an employer employee relationship, no GST shall be applicable on it.

Is GST applicable on full and final settlement?

Thus, GST is applicable to notice pay recovery. In case the notice pay policy does not contain such agreement for tolerating the act of an employee. Then, such notice pay recoveries are not subject to GST.

Is GST applicable on contract employee?

As per the GST law, services provided by an employee to the employer in accordance with the employment agreement are neither considered as supply of goods nor supply of services. Hence, GST is not leviable in such cases.

Is GST payable on salaries and wages?

You may have to pay 18\% GST on entire salary.

Is GST applicable on notice period recovery?

held that GST at the rate of 18\% is applicable on recovery of notice pay from the employees who leave the company without completing the notice period as per the appointment letter.

What if employee does not pay full final settlement?

1 Answer. Dear Sir, Withholding of terminal benefits (payments due at the time of full and final settlement) by the company (employer) is illegal as well as unjustified. In case of delay, an employee can legally claim an appropriate interest upon the delayed payments.

How do I recover my GST amount?

Step 1: Log in to the GST portal, go to the ‘Services’ tab, click on ‘Refunds’ and select the ‘Refund pre-application form’ option. Step 2: On the page displayed called ‘Refund pre-application form’, fill in the details asked, and click on ‘Submit’.

What if a contractor is not registered for GST?

Yes. If he isn’t registered for GST he can not receive GST. If you receive GST you need to remit it.

Is full and final settlement legally binding?

No. The creditor can argue that, even if it agreed to settle the claim, the agreement is not binding. However, the creditor may be estopped from claiming the balance.

Can a company hold full and final settlement?

“Under the current Payment of Wages Act, 1936 there is no specific time limit for making full and final settlement payment on resignation of an employee,” explains Gupta. However, for cases such as dismissal and retrenchments, the deadline to make final payment are governed under the Payment of Wages Act, 1936.

Is GST recoverable?

GST is a recoverable tax.

Do I have to pay GST on amount of service bond?

No need to pay GST amount on the amount of service bond. It is just a compensation for not fulfilling the bond terms and conditions. As there is no supply of services involved therefore no need to pay GST and also this payment is against the employment contract. Talk to Vivek Kumar Arora NOW!

Is notice pay recovered by employer subject to GST?

In case of notice pay recovered by employer this would be subject to levy of tax under GST, as this is a supply of service effected by the employer to the employee and the employer would be liable to pay tax under GST. This is actually supply of service of “tolerating an act or situation provided by employer to employee”.

Is GST applicable on perquisites paid to employees?

Even perquisites cannot be levied to tax as services by an employee to the employer in the course of or in relation to his employment is outside the scope of GST (neither supply of goods or supply of services) being covered in schedule III. When there is no recovery of any amounts from employees, there could not be any GST impact.

When is transaction value not applicable for GST Levy?

When there is recovery of any amount from employees towards any supplies (unless exempted), such supplies could be treated as supply by revenue department. The transaction between employee and employer is treated as related party transaction and therefore, transaction value would not be applicable for levy of GST.