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GST on Director's Remuneration

Vishakha Mahajan (CA in Practice ) (84 Points)

06 June 2017

What is the applicability of GST on director's remuneration?

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4 Replies

Piyush Tanwar (Assistant Manager - Accounts) (1432 Points)
Replied 06 June 2017

@ VishakhaMahajan

GST is not applicable on the director's remuneration or salary.

GST under Reverse Charge will only applicable on the sitting fees and other services provided or to be provided by the Director.

Services provided or agreed to be provided by a director of a company or a body corporate to the said company or the body corporate otherwise than in capacity of employee shall be taxable under Reverse Charge Mechanism and tax shall be paid such company or body corporate.

Thanks and Regards

Piyush Tanwar

CA Finalist and Internal Auditor

Mobile - 9717468521

1 Like

CA Ruchika Tulsyan (Chartered Accountants) (1294 Points)
Replied 20 June 2017

what is the Provision if directorship is in more than 1 company?

Sanjay Agrawal (2 Points)
Replied 06 August 2017

what if services provided are exempt under gst like healthcare services provided by director in a corporate hospital as a doctor

even then RCM applicable

Akshit (Chartered Accountant) (28 Points)
Replied 23 September 2017

What if sitting fee is specified in contarct of employment ? And Is sitting fee considered as professional rececipt ? And if sitting fee is also paid to an employee who is not a director becuase employee 's presensce in meeting is required (as per contractract of employement ) ?