We are providing Payroll services to a client and collecting GST @ 18% on both Salaries payable and on our Service charges. Is this correct? Since our client will transfer salaries payable to our account and we will disburse the same to the employees who are in client place, so collecting GST on salaries is correct? Please guide me further.
01 September 2021
As per my opinion, since the salaries are just reimbursement, paid on behalf of client and collected from the client, no profit element is found. So, GST is applicable only on the services rendered other than salary reimbursement.
CAclubindia
