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Wages

01 November 2017

is it GST applicable to a partnership firm if wages paid more than Rs. 10,000/- in cash in a single day to a single person.

If applicable than what is the GST rate.

For the tax planning, can I show that wages paid as job work charges.
If yes than what will be applicable on GST as well as explain RCM related to this point

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(Guest)

YES GST IS APPLICABLE TO LABOR CHARGES PAID

IF YOUR TURN OVER GOES MORE THAN PESCRIBLE LIMIT THEN IT IS APPLICABLE

YES RCM ASLO APPLY FOR THIS

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Ankur Choudhary (Student) (59 Points)
Replied 01 November 2017

As per schedule III of cgst act, no gst shall be charged for the services provided by an employee to the employer in the course of his employment.

If you pay labour charges to a person who is working on your guidance, using Your resources and remuneration will be paid treating that person as your employee, no gst is payable.

If the same labor is provided by any contractor, then :

1. the activity of such contractor shall be taxed as man power supply service and gst shall be charged accordingly.

2. On the amount Payable by such contractor to those labor shall be in the course of their employment and no gst shall be charged on the same.

Lavanya Devalapalli (36 Points)
Replied 01 November 2017

what is the prescribed turnover limit

Lavanya Devalapalli (36 Points)
Replied 01 November 2017

wages paid by cash.
GST applicable or not.

Ankur Choudhary (Student) (59 Points)
Replied 01 November 2017

GST not applicable on such labour payments made directly to the concerned person.

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Lavanya Devalapalli (36 Points)
Replied 01 November 2017

irrespective of the amount paid by cash

Ankur Choudhary (Student) (59 Points)
Replied 01 November 2017

yes

irrespective of the amount paid by cash

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Lavanya Devalapalli (36 Points)
Replied 01 November 2017

reverse charge will be applicable if more than Rs.5000/- spent in cash.

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 01 November 2017

@ Dear Lavanya Devalapalli.,

RCM can't applicable for Salary and Wages Upto any amount. Bcoz, These are out of GST and Also Employer and Employee relationship expenses are out of GST....

No more restriction for Cash Payments and Receipts under GST....

But, Cash limits briscribed under Income Tax Rule So, above 10k cash payments atract Sec 269SS under income Tax...
Go to refer sec 269SS.... Also 269ST for reference...

>>> GOOD LUCK <<<

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