RCM-Director

Scenario:_ A director of a company lets out their commercial property for rent to the same company.

Additionally, the director receives fees from the company for their services rendered. _

GST Liability:_ For both services, the GST liability under RCM would be as follows:

1. *Rental Services:* Yes, the company would be liable to pay GST under RCM for the rental services received from the director. This is because rental services are covered under the RCM provisions, and the company is the recipient of the service.

2. *Director's Fees:* Yes, the company would also be liable to pay GST under RCM for the director's fees. This is because services provided by a director to the company are covered under the RCM provisions, and the company is the recipient of the service.

_Important Points:_ - The company must pay GST under RCM for both services, regardless of whether the director is registered under GST or not. - The company can claim input tax credit (ITC) for the GST paid under RCM, subject to the usual ITC eligibility criteria. -

 The director, as the supplier of services, must also comply with GST regulations, including registration, invoicing, and return filing, if their aggregate turnover exceeds the GST registration threshold.

" Finally!! End has come to the long drawn confusion among the taxpayers "

Whether a Company is liable to pay GST under RCM on Director Remuneration

📽️ Check out this video on YouTube - https://youtu.be/MY-65yX7-k8

For more details -
CA Sachin M Jain .8O975. l5447

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