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Should opc director pay gst ?

Christine Diaz (132 Points)

10 May 2021

I am a opc director . I will be receiving 45 lakhs as salary from opc ? Should i file gst ?

Thanks :)

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13 Replies

Lotus Agrawal (Practice) (1361 Points)
Replied 10 May 2021

Your company as a service provider may be liable to gst if turnover exceeds the specified limit but you as a recepiant of salary is not liable to gst.

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Christine Diaz (132 Points)
Replied 10 May 2021

If director receives 45 lakhs as salary per year, should tax auditing be done , sir ? Thanks :)

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 10 May 2021

Not required for tax audit

Lotus Agrawal (Practice) (1361 Points)
Replied 10 May 2021

Director is not required to tax audit.

Christine Diaz (132 Points)
Replied 10 May 2021

But sourav sir, on this page,

LIVEMINT.COM - Budget 2021 increases tax audit limit to ₹10 crore,

Search for above article title in google. Could not input url here .

It says " However, if the person is carrying on profession then an audit of books of accounts is mandatory if gross receipts/turnover exceeds ₹50 lakh," said Abhishek Soni, CEO and co-founder, Tax2win.in. "

Thanks:)

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 10 May 2021

No GST on salary paid to executive directors. Income from profession is not salary as per Income Tax Act.

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Christine Diaz (132 Points)
Replied 10 May 2021

Originally posted by : CMA Poornima Madhava

No GST on salary paid to executive directors. Income from profession is not salary as per Income Tax Act.

Should there be audit if director salary is 45 lakhs per year ? Thanks :)

Lotus Agrawal (Practice) (1361 Points)
Replied 10 May 2021

No Audit.

Christine Diaz (132 Points)
Replied 10 May 2021

Can the director salary be variable in a FY ? Or should it be fixed throughout the year ? Thanks :)

Lotus Agrawal (Practice) (1361 Points)
Replied 10 May 2021

It not necessarily be fixed.

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 11 May 2021

In this case tax audit is not required and director salary may be variable or fixed

Chirag (Professional) (1979 Points)
Replied 11 May 2021

Salary is out of purview from GST ,If any payment made by company to director except salary ,like comission on % of profits ,sitting fees and others for which TDS is debited u/s 194J then GST is payable on reverse charge basis ,What you said about livemint article ,it's IT audit ,and presumptive taxation u/s 44ADA which requires tax audit if opt for presumptive taxation and your Gross receipts exceeds 50 Lacs , but it's again subject to limit of 44AB ( Which is 100 Lacs /500Lacs(in case of Digital txns upto 95%) It's applicable for The current AY 21-22 , salary u/s 192 is not Profession u/s 44AA...For director salary ,you can fix as per the industry in which company operates by taking into account other financial aspects ,but it's always recommended to fix it throughout the year ,196/197/schedule V not applicable for private company's so there is no embargo although....