Central Board of Indirect Taxes and Customs (CBIC) vide its Circular No: 140/10/2020 – GST dated 10th 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:

GST on Directors Remuneration

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

Author Bio

More Under Goods and Services Tax

2 Comments

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

October 2020
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031