24 January 2024
Hello Everyone, A ltd is providing vehile hire service to B ltd . Diesel used for providing aforesaid service is recovered seperately at actuals ( without GST). Driver salary is paid by service recipient and recovered at actual from A ltd. Invoice is raised as under hire charges - 110000 Diesel - 100000 Driver salary - 10000 paid by B ltd
taxable value =100000 (110000-10000 driver salary) sgst - 9000 cgst - 9000 total - 218000
Is the invoice correct ? if wrong is there any risk to service receiver ? can department ask service receiver to pay gst if service provider is supposed to pay gst on higher amount ??
07 July 2024
The invoice provided by A Ltd. for vehicle hire services to B Ltd. raises GST law concerns. The taxable value should include all charges related to the service, including diesel charges, as they are integral to the service. The driver salary should not be included in the taxable value calculation, but clear documentation is needed. The invoice should be corrected to include diesel charges and recalculate GST, ensuring compliance and mitigating potential risks.
CAclubindia
