Applicability of reverse charge mechanism under gst on director consultancy services

There will not be any liability under RCM. As the entry in reverse charge notification says that services supplied by a director of a company or body corporate to the said company or body corporate. 

In your case, as consultancy charges are paid by company to a firm, RCM provisions will not be attracted. 

Firm is different assessee from its partners. 

There is a separate identity for Firm from its partners. Any payment made to the firm towards the services provided by them cannot be treated as the payment made to the partner himself in his personal capacity as a director. 

RCM is applicable only if the payment is in the nature of Directors Fees and it is not applicable if the director is in an employment with the company. 

So, on the payment made to the Firm as consultancy fees, GST cannot  be paid under Reverse Charge Mechanism, Forward Charge applies. 

There will not be any liability under RCM. As the entry in reverse charge notification says that services supplied by a director of a company or body corporate to the said company or body corporate. 

In your case, as consultancy charges are paid by company to a firm, RCM provisions will not be attracted. 

Sir,Thanks for your kind and valuable reply.

But the payments are made to the firm in which he id a Partner. How about that??

The director being a interested party in the firm has nothing to do with 

Originally posted by : Jagadish
	Sir,Thanks for your kind and valuable reply. But the payments are made to the firm in which he id a Partner. How about that??

RCM not applicable in any of the way to above said query....