Directors remuneration

This discussion clarifies the tax implications for director remuneration in India. It confirms that Goods and Services Tax (GST) is applicable under the Reverse Charge Mechanism (RCM) on any amount paid to directors, with no minimum limit. Furthermore, for Income Tax purposes, Tax Deducted at Source (TDS) is mandatory on all director remuneration payments, at a rate of 10% under Section 194J, irrespective of the amount paid.