Gst under rcm

This query is : Resolved

ABHISHEK RAI (Querist)
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28 August 2019 If a person X has a proprietorship firm named Ram Constructions which is registered under GST and same person(X) is a Director in a company named Shayam Pvt. Ltd. which is also registered under GST.And if Ram Constructions issue invoice to Shyam Pvt. Ltd. then Shayam Pvt. Ltd. must have to deposit GST under RCM because they are going to make payment indirectly to their director and every payment made to a director of the company is liable under RCM on amount paid.My concern is whether proprietorship firm will charge GST on invoice raise or not because it is register under GST.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 August 2019 Proprietorship firm will charge GST on invoice raise. RCM applicable only on remuneration paid to director.

ABHISHEK RAI

ABHISHEK RAI (Querist)
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28 August 2019 But sir proprietorship firm and X are same as firm name is only brand name and the invoice raised by firm is taxable in the income of X so why it is not consider as a payment made to director ???

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 August 2019 RCM applicable only on payment received for services rendered as director.

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