TaxTMI 
TaxTMI 
Is GST applicable on Deputation of Salaries of Sister Company employees?If applicable what is the Rate?
DEPUTATION OF SALARIES
20 Apr 2018 
5 Replies 
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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. (AI Summary)
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. (AI Summary)