RCM aplicable on services provided by director

This discussion clarifies the Goods and Services Tax (GST) implications for services provided by directors. While salary and interest paid to directors are generally exempt from GST, rent for commercial properties is taxable. GST under Reverse Charge Mechanism (RCM) applies to remuneration and sitting fees paid to directors, particularly when TDS is deducted under Section 194J. For commercial property rent, GST is applicable under the forward charge if the director is GST registered and their turnover exceeds the threshold.