We would like to know whether Flexible allowances /perks (viz. petrol allowance, driver allowance, telephone/ internet allowance/ attire allowance etc.) paid to employees will attract GST. If so what is the percentage?
From India, Chennai
From India, Chennai
Hi Ramanan,
Greetings of the day!!!
As per GST norms perquisites which are under CTC will not attract any tax as its coming under Employee - Employer relation but perquisites above CTC will attract GST.
As you have mentioned the perks like petrol allowance, driver allowance, telephone/ internet allowance/ attire allowance etc all are already fully taxable than already you are following wrong taxable structure.
Please Contact good tax consultant and change the structure immediately.Below link will help to identify the tax saver component. Individual
From India, Pune
175Greetings of the day!!!
As per GST norms perquisites which are under CTC will not attract any tax as its coming under Employee - Employer relation but perquisites above CTC will attract GST.
As you have mentioned the perks like petrol allowance, driver allowance, telephone/ internet allowance/ attire allowance etc all are already fully taxable than already you are following wrong taxable structure.
Please Contact good tax consultant and change the structure immediately.Below link will help to identify the tax saver component. Individual
From India, Pune
Thanks Mr.Ashish for the information provided. We are looking into various options in providing flexible allowances to our employees to give maximum Tax benefits within the income tax framework. Your information will help us to decide what kind of perks / allowances can be given to our employees for tax benefits.
From India, Chennai
From India, Chennai
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Maharashtra Special allowance Notification July 14 to Dec 14.pdf
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