we are paying monthly remuneration ( salary ) to director. and not paying RCM on it.Due to under knowledge of employer - employee relation ship .As per schedule III ,clause 1.
But some advance ruling Authority says that it is liable for RCM.Becouse as per notification No.
13/28.06.17 (Central Tax Rate ) serial No.6 it is categories supply ,hence directors services to company not fall under employee - employer relationship.
Though AAR not binding to us , but view shall be under consideration.
What is precaution we shall take .
please quote your valuable words.
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Directors & RCM
Replies (6)
Quick Summary
It is not a salary , it's a remuneration paid to directors which is coming under 18% in gst .
But sir , we are treating it , salary .
what is the difference between salary & remuneration.
what is the difference between salary & remuneration.
Salary we pay to the employee & Director is not our employee .
Cgst circular No.140 / Dt.10.06.20
GST Dept. said that if ,directors remuneration which are declard as salaries in the books of company and subject to tds u/s 192 of I.T. Act, are not taxable ,being consideration for services by an employee to employer in the course of or in relation to his employment in terms of schedule III of the CGST Act 2017.
GST Dept. said that if ,directors remuneration which are declard as salaries in the books of company and subject to tds u/s 192 of I.T. Act, are not taxable ,being consideration for services by an employee to employer in the course of or in relation to his employment in terms of schedule III of the CGST Act 2017.
No RCM on payment of Remuneration to Whole time Directors.
Thanks ,sir
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