Central Board of Indirect
Taxes and Customs vide Circular No:
140/10/2020 – GST dated 10.06.2020 has clarified levy of GST on Director’s
remuneration which are stated below:
- Company
taking services from Director (Independent directors and others who is not an employee
of Company) who is not in employment
with Company are taxable, the
recipient of the said services i.e. the Company, is liable to discharge the
applicable GST on it on reverse charge basis.
- Company
taking Services from Director who is in employment with Company are not taxable if Director‟s
remuneration which are declared as „Salaries‟ in the books of a company and
subjected to TDS under Section 192 of the IT Act
- Employee
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 taxable
the recipient of the said services i.e. the Company, is liable to discharge the
applicable GST on it on reverse charge basis.
Please find below the link
of said notification:
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