GST UPDATE
Desk of CA. Praveen Sharma
Series- 441
Case Laws on Director’s Remuneration
1- The part of the employee Director’s remuneration which is declared separately other than “salaries” in the appellant’s accounts and subjected to TDS under Section 194J of the IT Act as Fees for professional or Technical Services shall be treated as consideration for providing services which are outside the scope of Schedule III of the CGST Act, and is therefore, taxable and in terms of notification No. 13/2017- Central Tax (Rate) dated 28.06.2017, the recipient of the said services i.e. the appellant, is liable to discharge the applicable GST on it on reverse charge basis.
Refer to Clay Craft (India) Pvt. Ltd.
2- The remuneration paid to the Director of the applicant company is liable to tax under the reverse charge mechanism under subsection (3) of Section 9 in the hands of the applicant company as it is covered under entry no. 6 of Notification No. 13/2017- Central Tax (Rate)
Dated 28.06.2017.
Refer to Alcon Consulting Engineers (India) Pvt. Ltd.
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CA. Praveen Sharma
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