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Director Remuneration
Under private limited, if director is paid off Remuneration and TDS is deductible under section 192 of income tax act, then it would be liable for Reverse charge mechanism under GST?
Replies (6)
Quick Summary
As per CBEC circular no 140/10/2020-GST dated 10.06.2020 RCM is not applicable if following condition satisfy 1) Director is working in the capacity of employees and tds has deduct under section 192 income tax act 2) Remuneration accounted in the books of account under head salary
In other cases, RCM applicable under section 9(3) as it is covered under entry no 6 of N/N 13/2017- CT(R) dated 28.06.2017.
No sir it's not applicable following circumstances
no 1 as director is working in the capacity of employees and tds has deduct under section 192 income tax act
02 . accounted in the books of account under head salary those transaction gst not applicable
even CBIC clarify the position circular no 140/10/2020
no 1 as director is working in the capacity of employees and tds has deduct under section 192 income tax act
02 . accounted in the books of account under head salary those transaction gst not applicable
even CBIC clarify the position circular no 140/10/2020
Agree with Mr. Chethan data
As director's remuneration are charged under TDS sec192 it means it consider as salary otherwise they deduct under 194j So it means this Director is consider as employee of Co. and In GST Salary is lies in Sch-III so no GST levy hence No reverse charge will applicable
Income Tax deduction at source from the salary of an employee is not applicable RCM under GST. What kind of question is this?
In this case RCM is not applicable
it is covered u/s 9(3) of CGST Act, 2017, so RCM is applicable on service supplied by directors to a company. But if the director is working as full time director then it will be relation of employer and employee and no GST will be applicable.
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