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GST and TDS on Directors remuneration

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Renu Singh

43 Points Posted on 13 December 2020

Pl. Brief the tax liabilities on Directors remuneration whether we pay to director one lac per month.

GST. ?
TDS. ?

Replies (4)

Quick Summary

This discussion clarifies the tax liabilities on director remuneration, specifically concerning GST and TDS. For executive directors who are employees, TDS is deducted under Section 192 based on slab rates, and GST is not applicable. However, for independent or non-executive directors, GST is taxable under Reverse Charge Mechanism (RCM), and TDS is typically deducted at 10% under Section 194J for professional fees.

Ravi SADhiyan

Practice

4510 Points Posted on 13 December 2020

GST Independent Director Remuneration Taxable Under RCM

Income Tax TDS Rate @ 10 % under TDS

Shubham Jain

4 Points Posted on 13 December 2020

1. If director is an employee of company then as per schedule 3 of cgst act there is no requirement of GST
TDS is deducted u/s 192 as per slab rate.

2. If director is not an employee of company like independent director than it is taxable under RCM in GST.
TDS u/s 194J @ 10% is deductible