TMI BlogGST ON INCENTIVE PAID TO DIRECTORX X X X Extracts X X X X X X X X Extracts X X X X ..... ABC COMPANY HAVING TWO DIRECTORS,ONE DIRECTOR MARKETING THEIR COMPANY(abc) PRODUCTS AND GETTING INCENTIVE YEARLY BASIS. ABOVE CASE COMPANY HAS LIABLE TO PAY GST OR NOT ? THANKS IN ADVANCE - Reply By Himansu Sekhar - The Reply = If the Director is an employee, incentives carry the employer employee relationship. No GST - Reply By knr varma - The Reply = DIRECTOR WORKING FOR COMPANY AS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A MARKETING HEAD , BUT COMPANY PROVIDING INCENTIVE FOR DIRECTOR ONLY , COMPANY NOT PROVIDING INCENTIVE FOR STAFF , - Reply By Ganeshan Kalyani - The Reply = GST is not applicable on the incentive amount paid to the whole time director. This is because there is employer employee relationship between the company and the director. - Reply By KASTURI SETHI - The Reply = Incentive paid to Directo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the Company falls under the term, Salary , hence there is no deviation from employer-employee relationship. Hence no GST applicable.I support the views of both experts. - Reply By Alkesh Jani - The Reply = Sir, I have a small confusion that when services provided by the Director to the Company, and is taxable, how employer and employee relation is established? - Reply By Himansu Sekhar - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Reply = please verify the Section under which the TDS is deducted. whether Sec. 192 or 194 . - Reply By Himansu Sekhar - The Reply = Sect. 192 deals with salary payments. - Reply By KASTURI SETHI - The Reply = Sh.Himansu Ji, Now you have cemented your view. - Reply By Himansu Sekhar - The Reply = thank you sir - Reply By Alkesh Jani - The Reply = Sir, thanks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all for sharing such a good knowledge. So, if the Director is getting Remuneration and TDS is deducted under Section 194 , then incentives is also to be add to service provided by the Director to the Company and if Salary is paid under Section 192 then it shall be treated as neither supply of good or service as stated in Schedule III of CGST Act, 2017 . This is what I understood. Please cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect me, if mistaken. Thanks again to all - Reply By MARIAPPAN GOVINDARAJAN - The Reply = A brief discussion on the issue. - Reply By Himansu Sekhar - The Reply = An addition to my contentions even if the circular is issued during 2009. It may not be applied in the present context. Circular No. 115/09/2009 ST dated 31.7.2009 - Reply By Himansu Sekhar - The Reply = the Gener ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Circular No. 24/2012 dated 9.8.2012 of Ministry of Corporate Affairs, Government of India may also be referred in this regard. It is available in the site. - GST ON INCENTIVE PAID TO DIRECTOR - Query Started By: - knr varma Dated:- 31-1-2018 Goods and Services Tax - GST - Got 13 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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