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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Wages
Replies (14)
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.
what is the prescribed turnover limit
wages paid by cash.
GST applicable or not.
GST applicable or not.
GST not applicable on such labour payments made directly to the concerned person.
irrespective of the amount paid by cash
yes
irrespective of the amount paid by cash
reverse charge will be applicable if more than Rs.5000/- spent in cash.
@ 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 <<<
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 <<<
Not applicable as same us exempted from GST....
Thank you so much for solving my queries.
Welcome dear. ........
You are Most Welcome Dear Dear Lavanya Devalapalli.,
labour charges is covered under GST Regim not covered salary & wages...
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