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Gst on labour charges

Jeswanth Kumar (Student CA Final ) (54 Points)

31 January 2020

we have our own people and getting work done from them and we will pay amount as labour charges for every 15 days does it attract gst/tds?

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8 Replies

Sivaramaraju G (Learner) (2398 Points)
Replied 31 January 2020

No, it won't be applicable

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 31 January 2020

No... GST not applicable.

Labour charges means what...?
Can You give details?

Spurto Consultancy Services (Consultant) (1891 Points)
Replied 31 January 2020

Whether you will also be paying salary to them other than these charges?

Jeswanth Kumar (Student CA Final ) (54 Points)
Replied 31 January 2020

Nothing is paid other than this

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 01 February 2020

"Our People" Assume by me that there is relationship of Employer & Employee (CTC) , hence in term of Schedule III it's not an supply so No GST attracts.

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Jeswanth Kumar (Student CA Final ) (54 Points)
Replied 01 February 2020

One more clarification plz...
lumpsum amount will be paid to him as labour charges and he will be disbursed to his members in that case does it attracts gst...
does it attracts tds too...?
tia

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 01 February 2020

@ Mr Jeswanth Kumar.,

Don't be confuse to members for wrong meaning...

Is this LABOUR CHARGE or WAGES...?

As per Your last question.,
it's not employee salary. You give to Labour Charges to who is take contract works to you...

TDS applicable as per exceeding limits...
GST based on the contractors turn over and works...

Jeswanth Kumar (Student CA Final ) (54 Points)
Replied 01 February 2020

To be clear,we pay lumpsum amount to that person and he distributes them
he is not hired from outside,he is the factory person he just takes comission from the amount which he distributes to others