Payroll Companies scope of work is managing salaries of company employees. Salary calculation , labour Law compliances , Form 16 Generations etc. Doing work of payroll in critical and time consuming. Most of companies prefer outsourced payroll services. Services provided by payroll service provider varies from person to person. From compliance point of view it important to manage salary process as per Law of Land. In this article we discussion about GST on payroll service provider.
Section 22 to 25 specifies the persons who are liable to obtain GST Registration.
Every person who is engaged in supply of payroll services will be liable to be registered under the GST if
GST Rate on Payroll Services is 18 %
A registered taxpayer can claim the credit of taxes paid by him on inward supplies if he has a valid invoice and taxes are deposited by the supplier to the Govt. The input tax credit so claim by a recipient shall be reversed if he doesn’t make payment of the amount towards the value of supply of goods or services along with tax payable thereon within a period of 180 days.
Conditions to Claim GST ITC Credit
Earliest of the following date shall be considered as time of supply.
SAC Code For Payroll Services as below.
|SAC Code||Accounting, auditing and bookkeeping services|
|998221||Financial auditing services|
|998222||Accounting and bookkeeping services|
|998224||Other similar services n.e.c|