Amount paid to Director

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..... Amount paid to Director
Query (Issue) Started By: - Kaustubh Karandikar Dated:- 3-8-2023 Last Reply Date:- 8-8-2023 Goods and Services Tax - GST
Got 6 Replies
GST
Amount paid by XYZ Pvt. Ltd. to Mr. PQR (Proprietor - ABC) towards Repairs & Service Charges and Labour Charges and ABC paid GST on it. Mr. PQR is also a director of XYZ Pvt. Ltd. Any GST implication to XYZ Pvt. Ltd. since P .....

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..... QR is director of XYZ Pvt. Ltd. and proprietor of ABC? Reply By Amit Agrawal: The Reply: There is no liability to pay GST under RCM on XYZ Pvt. Ltd., as subject services were NOT provided by Mr. PQR in his capacity as director of the Co. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By Shilpi Jain: The Reply: Transactions bet .....

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..... ween XYZ and ABC to be at OMV since these are related persons. Why has this query arisen? Reply By Shilpi Jain: The Reply: Also amount paid to PQR is as a proprietor of ABC. No liabiltiy under RCM Reply By GUNASEKARAN K: The Reply: My understanding & view as follows; 1. It is not remuneration paid by XYZ to Mr.PQR 2. ABC issued Tax Invoice for supply of Repair and Service to XYZ and paid t .....

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..... he output liability, hence no other Tax impact i.e.RCM payable by XYZ. 3. The transaction between ABC and XYZ only not XYZ and Mr.PQR Reply By GUNASEKARAN K: The Reply: In continuation of my reply at serial No. 4 above, I wish to refer the relevant Circular for getting clarify on "Clarification in respect of levy of GST on Director's remuneration" 'But this circular not relating .....

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..... to the transaction between ABC and XYZ' Explanation: ABC & XYZ are different entities registered under GST which are liable to tax on their supplies falling under the definition of "Supply" under GST. Circular No: 140/10/2020 - GST Reply By Padmanathan Kollengode: The Reply: I agree with Experts, XYZ Pvt and PQR are related persons. If ABC is entited to full ITC, then value dec .....

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..... lared in invoice shall be the Transaction Value. Other wise OMV has to be determined. Regarding RCM liability, it is not in capacity as director and hence no RCM as covered by the recent circular on this.
Discussion Forum - Knowledge Sharing .....

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