Remuneration of directors and GST implications

Save Share

This query is : Resolved

Quick Summary

A discussion on whether a person can receive salary from both an LLP and a company for separate roles and working hours. The key issue is whether remuneration in the company qualifies as salary, thereby avoiding GST under reverse charge, or is treated as professional fees attracting GST.

shinu

shinu (Querist)

08 June 2026 Sir,

A person is a designated partner and a director.they are in the company of training of barista.thy are taking salary from llp.thy are also training in company.thy are the teachers.so want to know whether to be treated as salary in company and whether RCM will be avoiced or how to treat it?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

08 June 2026 To avoid RCM liability on the training/director income in the company, ensure that a valid employment contract is in place and the remuneration is strictly processed as salary subject to TDS under Section 192. If it is treated as professional fees (Section 194J), RCM cannot be avoided and the company must deposit 18% GST.

shinu

shinu (Querist)

11 June 2026 Doubt is whether in LLP and Company thy can earn salary provided in different timings?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now