TaxTMI 
TaxTMI 
Is GST applicable on Deputation of Salaries of Sister Company employees?If applicable what is the Rate?
DEPUTATION OF SALARIES
Kusalava InternationalLimited
Debate on GST Applicability for Employee Deputation: Employer-Employee Relationship vs. Service Supply Perspective. A company inquired about the applicability of GST on the deputation of salaries for employees of a sister company. Responses varied: some stated that GST is not applicable due to the employer-employee relationship being maintained during deputation. Others argued that if salaries are recovered from the sister company, GST applies as it constitutes a supply of services, akin to manpower supply, since the employer-employee relationship does not exist between the two companies. Another response mentioned the potential influence of having the same GSTIN on the taxability. (AI Summary)