Director remuneration type of income

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This query is : Resolved

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This discussion clarifies whether director remuneration should be considered business income for GST purposes. The consensus is that it is indeed business income. If combined with other business earnings, it could impact your aggregate turnover and potentially require GST registration.

DIVYESH JAIN

DIVYESH JAIN (Querist)
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19 February 2020 Dear Sir,

Is Director Remuneration considered as Business income in the hands of the Director.

A person is a Director in the company from which he has earned salary income of Rs. 4 lacs. He also carries on business in his personal name in which total income is 17 lacs as Contract receipt. Tds is deducted u/s 194c on this contract receipt.

Does the person has to club both the income director remuneration and business while preparing his Profit and loss, if done then the person becomes liable to register under gst.

Please help on the above matter.

Regards,
Divyesh Jain