Meaning of Payroll Services
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.
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Applicability of GST Registration for Payroll Services
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
- Aggregate Turnover in a financial year of taxable supply of goods or services exceeds Rs. 20 Lac or (Turnover > 20 Lac)
- Aggregate Turnover in a financial year of taxable supply of goods or services exceeds Rs. 10 Lac if person is located at North Eastern area ( Manipur , Arunachal Pradesh , Nagaland , Meghalaya , Assam , Tripura & Mizoram , Sikkim , Jammu & Kashmir , HimachalPradesh & Uttarakhand ) ( Turnover > 10 Lac )
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What is GST Rate on Payroll Services ?
GST Rate on Payroll Services is 18 %
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GST Return filing due date for Payroll Services ?
- GSTR 3 B Each Month by 20 th of next month.
- GST registration holder would have to file GSTR-1 ( based on turnover its monthly or quarterly )
- Finally, annual GST return must be filed by all GST registered entities on/before the 31st of December.
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GST Credit ITC For Payroll Service Provider
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
- Recipient has valid tax invoice / Debit Note / Bill of Entry
- Goods or Services are received
- Taxes are paid to Govt. ( From Supplier side )
- GST Return is filed
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When GST become Payable for payroll Services?
Earliest of the following date shall be considered as time of supply.
- When invoice is issued
- When invoice is not issued in 30 days from date of supply of service
- Date of receipt of services in books of account of service recipient
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What is SAC Code For Payroll Services ?
SAC Code For Payroll Services as below.
| SAC Code | Accounting, auditing and bookkeeping services |
| 998221 | Financial auditing services |
| 998222 | Accounting and bookkeeping services |
| 998223 | Payroll services |
| 998224 | Other similar services n.e.c |
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[fancy_link title="Read GST Return Filing for Payroll Services" link="https://anbca.com/gst-audit/gst-return-filing/" target="_blank" style="2" class="" download=""]
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