Good and services tax

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section 7(1)(c)
deemed supply
b) suppy between related person ordistinct person
definition of related person includes..
such person are e'er and e'ee
section 7 (2)
negative list
services by e'ee to e'er is not supply
..
what is the concept or conclusion. here?
Replies (2)
Originally posted by : Yami Soni
section 7(1)(c)deemed supplyb) suppy between related person ordistinct persondefinition of related person includes..such person are e'er and e'ee section 7 (2)negative listservices by e'ee to e'er is not supply ..what is the concept or conclusion. here?

Under Section 7(1) (c) read with Schedule I 

1- Supply between related persons or distinct persons  

Here cover only Gift Value more than Rs. 50,000/- and no other case covered 

Section 7(2) (a) read with Schedule III

2- Service by an employee to the employer in the course of or in relation to his employment

Here cover all monetary benefit and perquisite cover which is give to employee during the employement period.

Simply, employees - employer is considered as related person as per defination of "related person".
So, any supply between employee and employer is considered as deemed supply and taxable under GST.

But Service of employee to employer as part of employment is considered as negative list, So, it's not supply and hence, exempt.

but if employees give other service other than as as part of employment is not in negative, so it's deemed supply and hence taxable

second side, if employer give any services or any supply than that also considered as deemed supply ( because service by employees to employer is in negative list, not service by employer to employees). hence taxable...but in this case one exemption is given that Gift up to 50,000 is not considered as supply.


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