Is director consider employees or not?

is director consider employees or not?
Replies (7)
Quick Summary
This discussion explores whether a company director is considered an employee. Generally, a director is not an employee unless they are a full-time director receiving a monthly salary with TDS deducted under Section 192. In such cases, the employer-employee relationship is established, and GST, including the Reverse Charge Mechanism (RCM), may not apply. However, recent AAR decisions suggest RCM is applicable, though this view is contested, particularly when a clear employer-employee relationship exists.

Director is not employee of company
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
I do agree with view of Mr Yash
Also please advice regarding RCM of director , recently decision by AAR, whether RCM applicable on not on director remuneration,
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
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.

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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details