We would like to know whether flexible allowances/perks (such as 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
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From India, Chennai
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Hi Ramanan, as per GST norms, perquisites that are under CTC will not attract any tax as they fall under the Employee-Employer relation. However, perquisites above CTC will attract GST.
Since you mentioned perks like petrol allowance, driver allowance, telephone/internet allowance, attire allowance, etc., all of these are already fully taxable. It seems you are currently following the wrong taxable structure.
Please contact a good tax consultant and make the necessary changes to the structure immediately. The link below will help you identify the tax-saving components: http://www.incometaxindia.gov.in/pag...c-content.aspx
Thank you.
From India, Pune
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176Since you mentioned perks like petrol allowance, driver allowance, telephone/internet allowance, attire allowance, etc., all of these are already fully taxable. It seems you are currently following the wrong taxable structure.
Please contact a good tax consultant and make the necessary changes to the structure immediately. The link below will help you identify the tax-saving components: http://www.incometaxindia.gov.in/pag...c-content.aspx
Thank you.
From India, Pune
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Thank you, Mr. Ashish, for the information provided. We are exploring various options to provide flexible allowances to our employees to maximize tax benefits within the income tax framework. Your information will assist us in determining the types of perks/allowances that can be offered to our employees for tax advantages.
From India, Chennai
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From India, Chennai
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