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Remuneration to directors comes under rcm under GST

Ashish Agrawal RPAC (3 Points)

14 April 2021

remuneration to directors comes under rcm under GST BUT WHAT IF DIRECTOR RECIEVING COMMISSION HAVE GST NO. THEN?

WHEATHER RCM WOULD BE APPLICABLE UNDER THAT CASE?

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4 Replies

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 14 April 2021

Any service provided by director in the capacity of director to the company comes under RCM regardless whether he is registered or not.

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 14 April 2021

The services provided by a non-executive director to the company is subject to GST and will fall under the reverse charge mechanism of GST irrespective of commision

Deepak Kumar (791 Points)
Replied 14 April 2021

Yes i Agree with sourav ji

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 15 April 2021

No .... remuneration paid to whole te director does not cover under RCM .it's cover Under Schedule III of CGST Act

Yes if any Remumration or commission is paid to independent director (define u/s149(6) company Act ) RCM is applicable in term of Notification 13/2017 CT (r)

Note : Kindly Refer Circular 140/10/2020 GST for complete explanation on above .