Question ID : 44655

COMPANY RUN ITS OWN BUS FOR TRANSPORTATION OF ITS EMPLOYEES

Dear Sir/Madam, Please note, a manufacturing company run its own bus for transportation of its employees. Since the appointment letter given to employees does not specify about the Transportaion facility, the GST auditor treats this as service given by employer to employee treating it as related party transaction and applying cost+10% valuation rule asking company to pay the GST liability with interest and penalty. Whether the action of the auditor is justified. Please let me know how to go about this.

posted by Shridhar H on May 25 2024 12:00AM