Board meeting fees/sitting fees to directors

As per  notification 13 / CT(R)  ,  28/6/2017   -services  supplied  by a  director of  company  to company  located in taxable territory  RCM  is applicable .  you can download this notification form CBEC web site  CBEC / GST / Notification for your records .

please confirm with other also. 

Mayank, Yes RCM is applicable on sitting fees paid to director since as per notification 13/2017 of CGST dated 28.06.2017, RCM is applicable on all services provided to company or body corporate located in taxable territory by a director.

Thanks, for the quick reply.

Now,

Suppose that a Pvt Ltd co. has paid Board Fees and not deducted RCM. for F.Y 2018-19 till now. What Steps should we follow now?

Hi all

As per section 2(102) of CGST Act, 2017, “services” means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which  a separate consideration is charged.

Accordingly it may be construed that services of director, like:

 sitting fees,

 commission,

 services charges for giving guarantee for loan taken by company

has been covered under the Government notified services on which the tax would be payable on reverse

charge.

If services are provided under employee to employer relationship then it will be out of the ambit of GST,

but other than salary whatever is provided to directors are covered under RCM.

Rate of tax 18%

Hi all,

What about if Director is already registered under GST?

Company need to pay under RCM or Director is liable to raise invoice for the same ?

And one more thing if Director Sitting fees paid for Past months but GST not paid on it under RCM than what is Penalty & Interest ?