Is director consider employees or not?

Abc Xyz (8 Points)

11 May 2020

is director consider employees or not?

Reply
Follow
Share

7 Replies

Mohit Jagnani (Professional - CA firm) (524 Points)
Replied 11 May 2020

Director is not employee of company

yash (accountant) (519 Points)
Replied 11 May 2020

If director is full time director and getting salary on monthly basis and deducting TDS on salary then only he is considered as employee of the company

sunil arora (54 Points)
Replied 11 May 2020

I do agree with view of Mr Yash

VIKAS SAINI (1153 Points)
Replied 11 May 2020

Also please advice regarding RCM of director , recently decision by AAR, whether RCM applicable on not on director remuneration,

sujith kumar dasa (banglore) (1496 Points)
Replied 11 May 2020

Yes, AAR has given decision that Director cant be treated as employee of the company and RCM is applicable on all payments made to him for his services. However the decision is factually wrong on many fronts and cant be considered as final.

Hence whole time director, who is paid monthly salary and TDS deducted under 192 will be considered as employee and no RCM on such payments is applicable

Pankaj Rawat (GST Practitioner) (55010 Points)
Replied 14 May 2020

As per Notification 13/2017 CT (r) )RCM is applicable on service supplied by directors to a company.
But when the director is working as full time director then it will be relation of employer and employee and as per Schedule III no GST will be applicable.

CA Altamush Zafar (GST Consultant) (15544 Points)
Replied 14 May 2020

Relation of employee-employer has to be established. Mere receiving money by the name of salary won't be enough. The money received by the person should also be in the nature of salary and not just by the name of it.