The decision also highlighted that the Input Tax Credit (ITC) is limited to the cost borne by the company for offering these canteen services.

Kohler India, in compliance with the Factories Act, 1948, had entered into an agreement with a canteen service provider (CSP) to supply meals to its workers. The CSP invoices the company based on the employees’ consumption, which is tracked through the factory’s system. While the company bears a portion of the canteen costs, the remainder is deducted from employees’ salaries without any profit motive.

The key issues addressed in the ruling were whether the nominal deduction from employees’ salaries for meals would be regarded as a ‘supply’ under the CGST Act, 2017, and whether the company could claim ITC for GST charged by the CSP for canteen services provided as mandated by the Factories Act, 1948.

The AAR concluded that the perquisites given by an employer to an employee under a contractual agreement are not subject to GST. Additionally, the provision of canteen facilities, as required by Section 46 of the Factories Act, 1948, is undisputed. The company’s HR Manual stipulates that employees receive these services at a subsidised rate. Therefore, the salary deductions for meals are not considered a ‘supply’ under the CGST Act, 2017.

Furthermore, the company can claim ITC for the GST paid on canteen services, but only to the extent of its share of the costs, excluding the proportionate credit embedded in the employees’ share of the cost.

The post “Employee meal deductions not a ‘supply'”: Gujarat AAR appeared first on HR Katha.

Furthermore, Infosys experienced a decrease in its workforce, with a net headcount dip of 3,611 reported in the first quarter of fiscal 2024. This was in stark contrast to the addition of 52,842 employees during the same quarter the previous year.

Regarding hiring plans, Infosys stated that it will adopt a demand-based approach and evaluate its requirements as per market needs, aligning with the practises of other industry peers. However, the company did not disclose the exact number of hires it plans to make for the entire year, unlike the approximately 50,000 candidates it onboarded the previous year.

In relation to salary hikes, Infosys has not yet made any official announcements. Typically, the company rolls out salary increments in April, but this time, the decision is still under consideration. Likewise, specific details about the quantum of variable pay given during the quarter were not disclosed by the management, though employee expenses did increase by 13% over the year.

Despite the challenges, Infosys did manage to lower its attrition rate, which stood at 17.3 per cent for the quarter, compared to 20.9 per cent in the previous quarter. The company remains cautious about hiring and other financial decisions, taking into account the demand environment and the overall business outlook for the rest of the fiscal year.

The post Infosys plans to follow a demand-based hiring strategy appeared first on HR Katha.

The Company has, however, offered alternative positions within the organisation, to about 40 per cent of those impacted. This also means that the remaining have been offered no other alternative but to leave.  A majority of the affected staff members, about 331, have been associated with the Company’s social media sales team in Austin, Texas. The two offices of GoDaddy in Austin will also be closed to avoid the burden of their costs.

However, the Company also assures that once the situation returns to normal, it will restart the hiring process.

The last working day for the employees will be September 1. The concerned employees will be on administrative leave from June 24 to September 1. After that, these employees will receive two weeks of pay for each year of their tenure, with a minimum of four weeks. They will continue to avail healthcare benefits till September 30.   With effect from October, the Company will provide elected health coverage, till December, by paying the full premiums for the Consolidated Omnibus Budget Reconciliation Act or COBRA insurance. This insurance helps employees (those who have recently lost their jobs) avoid a gap in health coverage.

The post GoDaddy experiences surge in business, yet lays off over 800 employees appeared first on HR Katha.

The Company is reported to have suffered a lot in terms of profit margin and is trying to take corrective measures by reducing its workforce in India. It has already cut 150 jobs in the telecommunication networks division and had cut down on hiring since April 2019. The layoff will impact its sales, marketing, R&D, manufacturing, finance, human resources and corporate relations departments in the next four months.

Its present workforce strength in the country is about 20,000. Apparently, the Company will now focus more on generating more profits than revenue in India.

The Company is aiming to make its workforce leaner so that it can allocate resources to the areas that are profitable, and at the same time invest in research and development, set up assembly lines, and also introduce new technologies.

Samsung, which had once dominated the smartphone and televisions market, is now facing strong competition from Xiaomi, Realme, OnePlus and other players.

However, the Company maintains that its commitment to India remains unchanged and will continue to invest across its businesses. Samsung recently built what is probably the world’s largest mobile factory in Noida, with the objective of researching and exploring new businesses, such as 5G network.

The post Samsung to lay off 1,000 employees in India appeared first on HR Katha.