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Salary

04 August 2017

sir

i want to ask if i pay salary in cash to my 4 employees total rs 24000 - rs 6000 each it will attract gst or rcm on it or not

can i do the above salary payment in single day in cash, as some people are saying that it is expense above 5000 so we can not do it.

thanks

tushar

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19 Replies

Studentsca (CA Practice ) (3577 Points)
Replied 04 August 2017

GST is not applicable on salaries.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 04 August 2017

Yes GST not applicable on salaries. GST can't applicable for employer and employee relationship activities.....

Chhatra Singh Dugar (1464 Points)
Replied 04 August 2017

It is clearly mentioned in the Schedule III ( 1 ) that activities or transactions which shall be treated neither as a supply of goods nor a supply of services covered services by an employee to employer in the course of or in relation to his employment.

GST Act is not applicable in this case..So you pay them 6000/ or more provisions of RCM is not applicable.

Tushar Tulsian (124 Points)
Replied 04 August 2017

What is the maximum limit of cash expense can we do in single day.is salary included in that limit

Chhatra Singh Dugar (1464 Points)
Replied 04 August 2017

As salary is out of purview of GST Act, whatever pd by you in head is not going to clubbed with Rs 5000/ limit. This limit is over & above salary. Any amount pd as salary will not be added in Rs 5000/ limit.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 04 August 2017

Yes. i agreed to Chhatra Singh Dugar...

As per GST view your cash expenses noe exceed to Rs. 5000 you can't pay under RCM if you are a registered dealer. But, except RCM no limit...

As per Income Tax You can't pay above Rs. 10000 for salary is single person. Above Rs. 10000 you ll be pay as Bank Payment...

Tushar Tulsian (124 Points)
Replied 04 August 2017

Raja i dont get ur point please clarify it . According to chhatar ji i can make salary in cash to 4 persons rs 6000 each plus expenses upto rs 5000 on single day no problem in gst or rcm and IT

Tushar Tulsian (124 Points)
Replied 04 August 2017

Raja i dont get ur point please clarify it . According to chhatar ji i can make salary in cash to 4 persons rs 6000 each plus expenses upto rs 5000 on single day no problem in gst or rcm and IT

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 04 August 2017

Dear Tushar.....

1. Salary is not under GST.... You can give salary as your way...

2. RCM : When you received supplies from URD then you can pay tax under RCM basis. Govt ll give small relaxation for RCM. It's a day wise expenses is less than Rs. 5000 we can't pay GSt Tax under RCM. Its not include salary & Wages....

3. Income Tax: You can pay cash as Salary less than Rs. 10000. Above Rs. 10000 you can pay as Cheque by Salary...

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