Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Home Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles News Highlights
Extracts
Home List
← Previous Next →

GST on Director’s Remuneration

Goods and Services Tax - GST - By: - CA.VINOD CHAURASIA - Dated:- 11-9-2017 Last Replied Date:- 11-9-2017 - Introduction: This article discusses in detail about GST on Services of director i.e. sitting fees, commission etc. Taxability The government has power u/s 9(3) of CGST Act & u/s 5(3) of IGST Act, to notify the levy of GST on RCM basis on goods or services. Vide entry no. 6 of notification no. 13 of CGST dated 28th June 2017 & entry no. 7 of notification no. 10 of IGST dated 28th J .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y a director of a company or a body corporate to the said company or the body corporate. A director of a company or a body corporate The company or a body corporate located in the taxable territory. As per section 2(102) of CGST Act, 2017, services means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ch the RCM is applicable: Supplies notified by Government u/s 9(3) Taxable Supplies by unregistered person to registered person In case of RCM, the liability to pay tax is on the recipient of supply of goods and services instead of the supplier of such goods or services in respect of notified categories of supply. As the director s services are covered under section 9(3), the liability to pay tax is on the recipient company despite of the fact the turnover from director s services exceeds ₹ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

aid Act. Related notification link is as below: Notification No. 5/2017-Central Tax New Delhi, the 19th June, 2017 However, as per section 24(iii) of CGST Act, a person who is required to pay tax under RCM, shall be required to be registered compulsorily irrespective of its turnover. In view of the above, it may be construed that: The directors of the company are exempted from taking GST registration provided they providing only such services on which Tax is to be paid on RCM basis by the recipi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eds to be paid in the state where supply takes place, thereupon which it would land up in the hands of destination state government. The principles of determining the nature of supply (i.e. inter state supply or intra state supply) remain the same in case of RCM as well since the government has merely chosen the recipient of goods/services as the point of convenience from the point of view of better compliance with the law. Section 7 of the IGST Act states that where the location of the supplier .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is the supreme body of corporate governance. Therefore, it can be said that the place where directors services are being consumed is the place where the board of the company is situated. It is place where key management and commercial discussions that are necessary for the conduct of the business of an entity as a whole. Generally, the place of registered office of the company is such place. However, in many cases the registered office is not at the place from where the company is effectively g .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

overnance. They may meet, for a change, at a holiday destination. However, the meeting is for discussion of matters of corporate governance. The discussions held in board meeting is not restricted to a particular place but governing decisions are taken for benefit of entity as whole. Therefore, no matter where they meet, the meeting still discusses matters pertaining to the company, and therefore, the usual place of corporate governance should still be taken as the place of supply. Location of s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Forum
what is new what is new
  ↓     bird's eye view     ↓  


|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version