HYDERABAD: Manpower supply agencies operating in the Telugu states have come together, hoping for a change in tax rules under the Goods and Service Tax (GST). The agencies contend that the present taxation system would threaten the livelihood of nearly 4 lakh security guards in the two states. The agencies say that there has been a 56 per cent rise in wages in recent years, adding to their financial burden. Now, with GST, the agencies predict that labour costs would go up further which might result in lesser job creation and layoffs in the sector.
To register their grievances, the associations will organise a march from the Necklace Road to the central, customs and excise office on Friday. “It is not just about security guards per se,” said C Bhaskar Reddy, president, Association of Private Security Agencies for Telangana and Andhra Pradesh. “Staff who are procured through outsourcing will struggle to find employment and their livelihoods affected due to this.”
Those from the facility management agencies say that the service turnover element under the purview of GST in the manpower supply profession should be the total turnover in terms of the service charges being paid or received by the service receiver or provider. At present, the government treats the wages paid to outsourcing employees such as Employee Provident Funds (EPF) and Employees’ State Insurance Corporation (ESIC) contributions made to the respective government departments as taxable amount under the GST. “This needs to be reviewed immediately,” Reddy demanded.
Punjab National Bank to hold session on clarification of new tax regime
To clear the confusion regarding the new tax regime that rolled out around 10 days ago, Punjab National Bank is conducting a session to clarify questions regarding the system for all by an expert team of chartered accountants at the office premises at the circle office, second floor, Saeed Plaza, Lakdikapul.