XYZ (Proprietory Concern) and PQR(Proprietory Concern) are related persons (Brothers). On behalf of PQR, XYZ had paid the amount of Income Tax and other taxes to Govt. and then subsequently recovered from PQR. Will this amount to service provided to related person under Schedule – I of Section – 7 and even if there is no consideration, XYZ will be liable to pay GST on it?
Kaustubh Ram Karandikar Asked question September 14, 2021
Should be covered under pure agent. GST should not be levied on such recovery.
Team Taxwallah
Frah Saeed Changed status to publish January 23, 2022