Remuneration to director attracts GST under RCM

In re Clay Crafts India Pvt. Ltd. (GST AAR Rajasthan)

Clay Craft India Pvt Ltd has filed an application before the Rajasthan bench of the AAR to sought clarification on  Whether GST is payable under Reverse Charge Mechanism (RCM) the salary paid to Director of the company who is paid salary as per contract and  Whether the situation would change if the Director also is a part time Director in other company.

Company’s key points:

• The company said its directors are working as employees for which they are being compensated by way of a regular salary and other allowances.

Please become a Premium member. If you are already a Premium member, login here to access the full content.