Skip to main content

Perks Gifts to Employees May Come Under GST

Cos could however claim input tax credit on intra-company transactions.

India Inc may have to deal with another avatar of GST — the tax may be applicable on senior executives’ big-ticket perquisites over and above those mentioned in the employment contract and on gift items of over Rs 50,000. However, companies should be able to claim input tax credit on these intracompany ‘transactions’.

Tax professionals ET spoke to said the rate may be in the 18% band, depending on the nature of the perk/gift. A finance ministry official, who did not wish to be identified, said an employer’s gifts to employees will be treated as supplies without any consideration and attract GST. However, companies are likely to be able to claim input tax credit on it. Keeping tabs on company perks and gifts will not be an additional enforcement cost to the government, tax experts said. All purchases by companies will be available on GSTN. Therefore, during audits these issues can be easily identified. GST rules say services by an employee to the employer will not attract tax if they are related to his/ her employment. However, other kind of services may attract GST. “If an employee acts as a DJ in a company offsite and gets paid, such payment by his employer will attract GST,” said Waman Parkhi, partner, indirect tax, at consultancy firm KPMG.

Economic Times New Delhi, 06th July 2017

Comments

  1. This comment has been removed by a blog administrator.

    ReplyDelete
  2. Plainly, is the genuine warning article, all exhortation is recognizable genuine. Much obliged to you for this organization with us. I began to be intrigued and exhorted it. I love your substance about GST. CRA Address Change

    ReplyDelete
  3. Remarkable post. I simply came across your blog and desired to say that I have really enjoyed searching your blog posts. Thank you for sharing such blogs. Reliable Farm Taxation Planning

    ReplyDelete
  4. You've supplied us with an interesting article. This is a fantastic resource for expanding your understanding of the subject. Thank you very much. cpa firms outsourcing to india

    ReplyDelete
  5. This is a very useful post about Integrated Payment Systems Singapore .Really very happy to say, your post is very interesting to read. I never stop myself to say something about .Thank you so much for this

    ReplyDelete
  6. You have a real ability to write a content that is helpful for us. Thank you for your efforts in sharing such blogs to us. Business tax accountant specialist

    ReplyDelete
  7. The content you've posted here is fantastic because it provides some excellent information that will be quite beneficial to me. Thank you for sharing about singapore tax. Keep up the good work.

    ReplyDelete
  8. A unique invitation in your clients for touring your strategic alliance companions' internet site or join their publication can growth your patron base and bring about more income while reciprocated.alliance global solutions

    ReplyDelete
  9. This is excellent information which is shared by you. This information is meaningful and magnificent for us to increase our knowledge about it. Keep sharing this kind of information. Thank you. Corporation Tax Advice In London

    ReplyDelete
  10. Valuable info, this information is excellent and essential for everyone. I am very very thankful to you for providing this kind of information. abacus singapore

    ReplyDelete
  11. Actually vital information, it's not like all the blog site sites that we find below, congratulations, I was looking for something such as this as well as found it right here. Thanks for sharing this blog website here. plr ebooks

    ReplyDelete

Post a Comment

Popular posts from this blog

GST : TRADERS WITHIN REVENUE THRESHOLD OF 1.5 CR WILL UNDER EXCLUSIVE CONTROL OF THE STATE

GST Council says states will get exclusive control over all dealers up to a revenue of Rs1.5 crore—addressing the issue of dual control over small traders In a big step towards the implementation of the goods and services tax (GST), the centre and the states on Friday reached a consensus on most contentious issues under the new indirect tax regime, raising hope that they would be able to agree on the last remaining issue, the tax rates, by next month. The GST council, at its first meeting, agreed on a revenue threshold of Rs20 lakh below which the traders will be exempted from GST. This limit will be Rs10 lakh for the north-eastern and hill states. The council also managed to reach middle ground on sharing of administrative powers between the centre and the states. It decided that states will get exclusive control over all dealers up to a revenue threshold of Rs1.5 crore—thus addressing the issue of dual control over small traders. Given the lack of expertise among states to l

Benefits for Members in Practice by Committee for Members in Practice (CMP) by ICAI

Hello Professional Colleagues and Dear Friends, Greetings of the Day!!! Committee for Members in Practice (CMP) by ICAI is providing so many benefits for Chartered Accountants of ICAI who are in Practice, but many of us are not aware about this. The only purpose to write this Blog is to share knowledge and awareness about the benefits available to us and to encourage Members to take benefits of the same. It drastically reduced our cost as all the tie-ups are made at PAN-India Level with the Branded companies/Corporations. List of Benefits which are currently available to Members in practice are as follows: 1. LIC Term Insurance: The Committee arranged in the form of specially designed Group Term Insurance through the LIC for Members of ICAI. The Term Insurance policy will cover death due to any reason. The salient features of the scheme are available at  https://cmpbenefits.icai.org/lic-term-insurance/ 2. Personal Accident Insurance for Members of ICAI: The Committee arranged in the f