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CBIC refutes reports of authorities seeking 18% GST levy on CEO, CXO salaries: Report - GST Station

CBIC refutes reports of authorities seeking 18% GST levy on CEO, CXO salaries: Report

CBIC refutes reports of authorities seeking 18% GST levy on CEO, CXO salaries: Report

    According to a CNBC-TV18 report, the CBIC stated that salaries of CEOs and employees are not subject to GST, and no such demand has been made by the authorities.

    The Central Board of Indirect Taxes and Customs (CBIC), on November 15, issued a clarification that media reports of authorities looking to impose Goods and Services Tax (GST) on the salaries of CEOs and employees are incorrect.

    According to a CNBC-TV18 report, the CBIC stated that salaries of CEOs and employees are not subject to GST, and no such demand has been made by the authorities.

    On November 14, media reports stated that the government is working on a proposal to levy an 18 percent GST on the salaries of CEOs and CXOs of companies. They also noted that top companies and banks are already being questioned by the tax department with respect to cross-charging.The reports noted that the government was trying to ascertain whether or not some companies have been passing on their common costs (for functions carried out at a company’s head office like HR, IT, audit and legal services), which also includes salaries of CEOs, to their branch offices. Such services come under the purview of the GST framework.

    Source- Moneycontrol.

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