Remuneration to directors
MAHARAJA SELVA ESWAR (285 Points)
12 April 2020
Whether gst applicability and RCM varies between remuneration and salary paid to a director.
12 Replies
RAJA P M
("Do the Right Thing...!!!")
(128096 Points)
Replied 12 April 2020
If the director treat as employee them no need to pay GST under rcm basis...
CS Lalit Rajput
(Company Secretary)
(34268 Points)
Replied 12 April 2020
In the recent AAR
The services rendered by the Director to the company for which consideration is paid to them in any head is liable to pay GST under RCM (Reverse Charge Mechanism),
Read more at: https://www.caclubindia.com/articles/gst-on-remuneration-paid-to-directors-41004.asp
The services rendered by the Director to the company for which consideration is paid to them in any head is liable to pay GST under RCM (Reverse Charge Mechanism),
Read more at: https://www.caclubindia.com/articles/gst-on-remuneration-paid-to-directors-41004.asp
RAJA P M
("Do the Right Thing...!!!")
(128096 Points)
Replied 12 April 2020
If You want to take decision through articles then just go to the another one @ Mr CS Lalit Rajput.,
https://www.caclubindia.com/articles/gst-on-directors-remuneration-41026.asp
https://www.caclubindia.com/articles/gst-on-directors-remuneration-41026.asp
CS Lalit Rajput
(Company Secretary)
(34268 Points)
Replied 12 April 2020
It's just about clarification Mr. Raja. What is given in Latest order of AAR, I stated. I am having several articles too. Before article link, wordings also written there Sir.
RAJA P M
("Do the Right Thing...!!!")
(128096 Points)
Replied 12 April 2020
Yes Dear...
As per the above give with GST provisions GST not applicable for paying salary / remuneration to directors as employee...
(May be the latest AAR is wrong or can be apply to higher authorities - it's my view only)
As per the above give with GST provisions GST not applicable for paying salary / remuneration to directors as employee...
(May be the latest AAR is wrong or can be apply to higher authorities - it's my view only)
CS Lalit Rajput
(Company Secretary)
(34268 Points)
Replied 12 April 2020
I am agreed with you sir
even after this AAR
The Question still exists:
Whether all the services provided by the director shall be covered by the RCM provisions or RCM is only restricted to the services provided by a director in the capacity of a director?
even after this AAR
The Question still exists:
Whether all the services provided by the director shall be covered by the RCM provisions or RCM is only restricted to the services provided by a director in the capacity of a director?
RAJA P M
("Do the Right Thing...!!!")
(128096 Points)
Replied 12 April 2020
Yeah...
Dear, As per the AAR and it's details says rcm applicable all...
But,
As per GST act (as Mr Rohit Kumar Singh article) Rcm not applicable for director dealt as employee in the company...
Dear, As per the AAR and it's details says rcm applicable all...
But,
As per GST act (as Mr Rohit Kumar Singh article) Rcm not applicable for director dealt as employee in the company...
CS Lalit Rajput
(Company Secretary)
(34268 Points)
Replied 12 April 2020
Let's wait for the more clarification from gst department as this is very important topic
RAJA P M
("Do the Right Thing...!!!")
(128096 Points)
Replied 12 April 2020
As per my view GST dept can't take voluntary by the matter AAR.
In case the company will be take it to higher officer or next level claim them it can be as salary matter...
In case the company will be take it to higher officer or next level claim them it can be as salary matter...
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 12 April 2020
AAR Ruling is applicable only on the petitioner who sought for it.
Moreover the petitioner can further file application to AAAR
Moreover the petitioner can further file application to AAAR
Shivam RC
(Student)
(23683 Points)
Replied 12 April 2020
I agree with Mr Pankaj Sir.
The ruling given by the Rajasthan Authority of Advance Ruling is applicable only on the petitioner i.e. Clay Crafts India Pvt Ltd.
But many Indirect Tax expert is of the view that the ruling is absurd, wrong and does not matches with the Provisions of the GST Law.
As per Para 1 of SCHEDULE III of the CGST Act 2017, Salary is out of the purview of GST ( i.e No Supply ).
And also TDS u/s 192 of the Income Tax Act 1961 is being deducted from the Salary of the Director.
The ruling given by the Rajasthan Authority of Advance Ruling is applicable only on the petitioner i.e. Clay Crafts India Pvt Ltd.
But many Indirect Tax expert is of the view that the ruling is absurd, wrong and does not matches with the Provisions of the GST Law.
As per Para 1 of SCHEDULE III of the CGST Act 2017, Salary is out of the purview of GST ( i.e No Supply ).
And also TDS u/s 192 of the Income Tax Act 1961 is being deducted from the Salary of the Director.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 12 April 2020
Yes .... Mr. Shivam it's not many tax expert but Every Tax Expert is of the view that ruling is absurd.
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