TMI BlogAmount paid to DirectorX X X X Extracts X X X X X X X X Extracts X X X X ..... 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 PQR 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 between 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 pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prietor 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 the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 to the transaction between ABC and XYZ' Explanation: ABC XYZ are different entities registered under GST which are liable to tax on their supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lies 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 declared in invoice shall be the Transaction Value. Other wise OMV has to be determined. Regarding RCM liability, it is not in capacity as director a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd hence no RCM as covered by the recent circular on this. - Amount paid to Director - Query Started By: - Kaustubh Karandikar Dated:- 3-8-2023 Goods and Services Tax - GST - Got 6 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management 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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