Rcm

One of our employed director has paid from his pocket for business support services for company to some site.lets say google site.

We have received the invoice from Google by the director name and in bracket ( company name)

Director is claiming reimbursement for the said service from company

My question is, on such transaction will RCM get attracted or not?

Pls advise

Replies (3)

Either the director or the company has to pay as Not 30/12 item 10 requires RCM for services received from outside Taxable teriritory used for business or commerce.

Theoritically and technically director only needs to pay.

Sir..If director has to pay on import of service, is the company again required to pay on reverse charge for the payment made to directors, as reimbursement for such services is not being in the nature of salary and reverse charge attracts there also??? 

Dear Kiran,

No service tax is payable under reverse charge by the company considering it as service provided by director to the company because service provided by employed director is not liable to service tax.

However if for any service which is otherwise governed by Notification 30/2015, invoice raised by the service provider is in the name of director along with name of company being mentioned then company will be liable to pay service tax under reverse charge if the service is provided to the company i.e actual service receiver is company and the name of director is written only for the purpose of refernce to the company only.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details