1. Does an Pvt. Ltd. Company registered under GST need to pay RCM on rent paid to unregistered directors of the same company, the rent paid by the company to the directors per month is above 50000 per month.
16 November 2021
RCM not applicable in case of TDS deducted under section 192 for director remuneration paid. RCM applicable in case of TDS deducted under section 194J.
18 November 2021
@ R Seetharaman - Rent neither comes under section 192 nor 194J as far as TDS is concerned. @Mohit Guptha Rent paid to directors will be covered under RCM. The company is not required to pay RCM on rent paid to director.
18 November 2021
As per my opinion, rent paid by the company to directors comes under remuneration to directors or it can also be considered as professional charges according to the board resolution. If it is considered as remuneration and TDS deducted u/s 192B then GST under RCM is not applicable as there is an employer and employee relationship which is exempted under GST. If it is considered as professional charges, then the company paying the rent has to pay GST under RCM, also the company has to deduct TDS u/s 194 I for rent paid as it exceeds the annual limit.
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