As per the S.No. 6 of Notification No.13/2017 – Central Tax (Rate) dtd. 28.June.2017, following entry is given
As per the above GST under RCM to be paid for any payment made by company to its director.
Following Confusion arises among the industry:
Due to this Confusion government come with a circular no. 140/10/2020-GST dtd.10th June 2020 regarding Clarification in respect of levy of GST on Director’s remuneration – Reg.
Analysis of the above clarification is as follows:
|S.No.||Nature of Relationship||Applicability of RCM|
|1||Director Not an Employee of the Company||Yes|
|2||Managing Director (Employee)||No|
|4||Independent Director as per Sec 149(6) of companies Act, 2013||Yes|
|5||Director (TDS is deducted u/s192 i.e. TDS on Salary)||No|
|6||Director (TDS is deducted u/s194J i.e. TDS on Professional Service||Yes|
|7||Contractual relationship of Master and Servant.||No|