GST on Directors Remuneration- Summarised Chart

Central Board of Indirect Taxes and Customs (CBIC) vide its Circular No: 140/10/2020 – GST dated 10^th June 2020 clarified the levy of GST on Director’s Remuneration.

Director’s remuneration which is declared separately ‘Other than Salaries’ in the Company’s accounts and subjected to TDS under Section 194J of the IT Act as Fees for professional or Technical Services shall be treated as consideration for providing services which are outside the scope of Schedule III of the CGST Act, and is therefore, taxable. And the recipient of the said services i.e. the Company, is liable to discharge the applicable GST on it on Reverse Charge Basis @ 18%.

This is presented in summarised Chart Form as follows:

To download the Circular click on: Circular No: 140/10/2020 – GST dated 1 0^th June 2020 : Clarification in respect of levy of GST on Director’s remuneration