Need to Know that the RCM would be applicable on Payment made to directors for attending Board Meeting.
8 Replies
prasad Nilugal
( GST Practitioner & Accounts )
(14805 Points)
Replied 22 February 2019
As per notification 13 / CT(R) , 28/6/2017 -services supplied by a director of company to company located in taxable territory RCM is applicable . you can download this notification form CBEC web site CBEC / GST / Notification for your records .
please confirm with other also.
CA Himanshu Gandotra
(Chartered Accountant)
(1160 Points)
Replied 22 February 2019
Mayank, Yes RCM is applicable on sitting fees paid to director since as per notification 13/2017 of CGST dated 28.06.2017, RCM is applicable on all services provided to company or body corporate located in taxable territory by a director.
mayank sanchety
(41 Points)
Replied 22 February 2019
Thanks, for the quick reply.
Now,
Suppose that a Pvt Ltd co. has paid Board Fees and not deducted RCM. for F.Y 2018-19 till now. What Steps should we follow now?
Muralikannan
(Indirect taxation )
(84 Points)
Replied 31 July 2019
Hi all
As per section 2(102) of CGST Act, 2017, “services” means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.
Accordingly it may be construed that services of director, like:
sitting fees,
commission,
services charges for giving guarantee for loan taken by company
has been covered under the Government notified services on which the tax would be payable on reverse
charge.
If services are provided under employee to employer relationship then it will be out of the ambit of GST,
but other than salary whatever is provided to directors are covered under RCM.
Rate of tax 18%
Riddhi J Davda
(Student CA Final )
(34 Points)
Replied 27 August 2019
Hi all,
What about if Director is already registered under GST?
Company need to pay under RCM or Director is liable to raise invoice for the same ?
And one more thing if Director Sitting fees paid for Past months but GST not paid on it under RCM than what is Penalty & Interest ?
Abhishek Raj Shah
(6 Points)
Replied 27 February 2020
And what if the director is appointed by government and the company is PSU????
Abhishek Raj Shah
(6 Points)
Replied 27 February 2020
| Originally posted by : Abhishek Raj Shah | ||
 |
And what if the director is appointed by government and the company is PSU???? |  |
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