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2020 (4) TMI 228 - AAR - GSTLevy of GST - salary paid to Director of the company who is paid salary as per contract - Reverse charge mechanism - levy of GST if the Director also is a part time Director in other company also - N/N. 13/2017- Central Tax (Rate) dated 28.06.2017. HELD THAT:- The consideration paid to the Directors is against the supply of services provided by them to the applicant company and are not covered under clause (1) of the Schedule Ill to the CGST Act, 2017 as the Directors are not the employee of the Company. In the instant case Director is the supplier of services and the applicant company is the recipient of the services. So it is very clear that 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 - also, the applicant company is located in the taxable territory and the Director's consideration is paid for the supply of services by the Directors to the applicant company and hence the same is liable to GST by way of reverse charge basis as provided under Notification No. 13 /2017- Central Tax (Rate) dated 28.06.2017 issued under Section 9(3) of the Central Goods and Services Tax Act, 2017. Situation will remain same in case the Director also is a part time Director in other company also, and will attract GST under reverse charge mechanism.
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