Dear Experts,
If a person residing in india get director remuneration (in USD) from a company in USA, in which he is a director (and not an employee), is it considered to be export of service.
Definition u/s 2(6) of IGST act has 5 condition for export of service, one of the condition is -
"the supplier and recipient of service should not be merely establishments of a distinct person"
Kindly reply considering this condition.
Thank you!
1. Please check the status of the Director. You mentioned as it is not an employee. Then He / She seems to be Non-Executive or Independent Director.
2. In such an instance, there is no direct relation of director with the company. Director is then getting remuneration for services rendered to the company in his /her own Individual Professional capacity.
3. Question of bringing clause (v) of Section 2(6) of IGST Act does not arise, Please also read the explanation 1 of "Establishment of Distinct person " as given under section 8, which clarifies as to what constitute as Establishment of distinct person".
4. Need more clarification of what kind of service the Director is providing to decide upon the place of supply of service.
5. In general sense of transaction, it will be treated as Export of service with place of supply outside India.
CAclubindia
