Unlawful GST Collection on Employee's Notice Period Buyout by the Employer; PwC SDC Kolkata Pvt.Ltd.

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Standing Committee
This is with respect to one of PwC SDC’s Ex. Employee’s request (with request ID 201804101165317) raised with Central Board of Indirect Taxes and Customs ("CBEC/CBIC") and the response received from the department;

The Petitioner was employed with Pricewaterhousecoopers Service Delivery Center (Kolkata) Private Limited' (registered under CIN U72200WB2010PTC142115) in Kolkata and operating in Kolkata & Bangalore.

Due to some personal emergency the employee (“Petitioner”) had to resign from the services and get relieved within a short notice. The employee bought out the Notice period for which the employee was supposed to pay the Notice period shortfall amount to the Employer. But the employer quoted and recovered the Notice period shortfall amount with 18% GST, which is absolutely unlawful and against the prevailing Central Board of Indirect Taxes and Customs (CBIC)’s GST policy for Gifts & Employment services (under Press release 73, dated July 10, 2017). The employee came up with the said CBIC’s Gifts & Employment services policy and repeatedly asked the Employer how the Notice Period Buyout / Shortfall amount (which even doesn't attract Income Tax) will attract GST, but the Employer [Pricewaterhousecoopers Service Delivery Center (Kolkata) Private Limited] didn't entertain any of the employee’s explanations (including the evidences from CBIC source), exploited the Emergency condition of the employee and recovered the Notice period shortfall amount with 18% GST.

Pricewaterhousecoopers Service Delivery Center (Kolkata) Private Limited (PwC SDC Kolkata Pvt. Ltd.) has been following the practice of recovering the Notice Period buyout / shortfall amount from the employees along with GST of 18% from almost a year. Being one of the Big 4s in Accounting and Auditing industry, PwC SDC Kolkata Pvt. Ltd. has been openly violating the prevailing CBIC’s GST policy and Profiteering itself by unlawfully demanding and recovering 18% GST from the Employees buying out the Notice Period for their early relieving.

The Petitioner requests for taking this incident forward for legal proceedings against the Employer so as to put an end to this unlawful practice of profiteering the organization and most importantly to bring justice to this case.

The Petition was also marked to:
CBEC Commissioner
 - Escalation.Cbecmitra@icegate.gov.in

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