Will the service of all kinds of director including whole time director and executive director will be liable to pay under rcm mechanism.
If yes, then please quote the recent notification no. regarding this issue.
Notification No. 10/2017- Integrated Tax (Rate) dated 28th June 2017, Government had notified that any services supplied by a director of a company to the said company would be covered under reverse charge.
As per sec 7(2) of IGST Act Supply EXCLUDES services supplied by an employee to the employer in the course of or in relation to his employment.
Whole time director is considered as an employee of the company and Rumenration/commission received by him is in the course of his employment.
Hence
Reverse charge would come into picture only in case of sitting fees or commission is received by a director other than whole time director.
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