DEPUTATION OF SALARIES

[Kusalava InternationalLimited]

Is GST applicable on Deputation of Salaries of Sister Company employees?If applicable what is the Rate?

[KASTURI SETHI]

Salary is not subject to GST whether on deputation or on regular basis. Employer-employee relation does not lose its status during deputation. During deputation an employee works on behalf of his employer.

[Ganeshan Kalyani]

The employee remain on roll of the company during deputation and hence GST is not applicable on employer employee relationship.

[CSSANJAY MALHOTRA]

If you recover salary of your employees from your sister concern then GST applicable as employer employee relation does not exist.

[Brijesh Verma]

Recovery of salaries from sister concern (for the deputation period) will be a supply of services (just like manpower supply services). There is no employer-employee relationship between the companies. The fact that deputies are an employee of one company and are having an employer-employee relationship with that company would not alter taxability of such transaction.

[YAGAY and SUN]

Doubtful if the GSTIN is same.

AI Summary

GST on deputation of salaries: salary payments exempt when employer-employee link endures; recharges may be taxable as services.
Where the employer-employee relationship continues and deputed staff remain on the sending company's payroll, salary payments are not subject to GST as they constitute remuneration for employment. If the sending company recovers salaries from a sister concern, that recovery may be treated as a supply of services akin to manpower supply, making GST applicable; registration commonality between entities may affect the analysis.