Life2014 (Professional) (107 Points)
16 May 2019A pvt company has 15 Lakhs annual turnover and not required to have GST registration as per exemption limit. However, payment made to the director u/s 194J for professional services. This comes under reverse charge mechanism of GST. Please reply if GST registration required in this case. Thank you.
abhishek bardia
(partner)
(308 Points)
Replied 16 May 2019
Padmanathan Kv
(2127 Points)
Replied 16 May 2019
Life2014
(Professional)
(107 Points)
Replied 16 May 2019
| Originally posted by : Padmanathan Kv | ||
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My suggestion is make payment under 192 so that you can avoid this situation. |  |
Thanks for reply. Can you please elaborate how payment to director can be made u/s 192? What changes need to be done in director designation, resolution etc.?
CA Aravind Penugonda
(Chartered Accountant)
(311 Points)
Replied 16 May 2019
Basis your facts, you are liable to get registered irrespective of threshold limit. If you can look for changing the status of director considering his functions, provisions as per Companies Act, 2013 and substantiate/ justify it by deducting tax u/s 192, you can skip the GST registration since RCM liability under GST triggers only in case of non-executive directors.
Padmanathan Kv
(2127 Points)
Replied 16 May 2019
CAclubindia
