I am a opc director . I will be receiving 45 lakhs as salary from opc ? Should i file gst ?
Thanks :)
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.
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
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:)
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.
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 :) |
 |
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 :)
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....
Recent Topics
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
- Clarification on RCM on Rent Payment for QRMP Deal
- Reclaimed itc in gstr9
- Gamification in Accounting Software: Boosting Enga
- I want to knw Hsn code and gst rate of resin produ
- Schedule FA clarification
Related Threads
CAclubindia
