RCM APPLICABILITY ON RENT PAID TO DIRECTOR

Rent Paid to Directors (Unregistered Person) after deduction of TDS by a PVT LTD Company, So Please Enplane the status of RCM applicable or Not 
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Quick Summary
This discussion explores the applicability of the Reverse Charge Mechanism (RCM) on rent paid to directors by a private limited company, particularly when the director is an unregistered person. While director's fees and certain professional services fall under RCM, rent paid for immovable property is treated differently. If the director is unregistered and their rental income exceeds the GST registration threshold, they must register and charge GST. If the director is already registered for GST for another business, the company may need to pay GST under RCM for the rented property.

As per my understanding. Services provided by the director in his capacity as director to the company are covered under RCM notification. 

Remuneration paid to director and that are covered under head of Salary are not subject to tax under RCM.

Remuneration which is declared separately other than salary and subjected to the TDS u/s 194J of IT Act, (fees for professional services) are treated as consideration and subject to tax under RCM in GST.

Now, Rent paid for renting of immovable property is not the supply of service in his capacity as a Director of the company. If Director is unregistered and his income from rent exceeds the threshold limit that requires a person to get registered, then Director must take the GST registration and charge GST on the Rent Invoices.

otherwise GST is not applicable.

     

What if Director is registered under gst act for other type of business..
and now providing part of his residence house to company on rent.. whether company have to pay gst under rcm?
is there any liability of directors regarding GST?
plz reply

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