Reverse charge on director remuneration: companies must pay GST where directors provide services but are not employees. Independent directors and other directors who are not employees provide services outside Schedule III and their remuneration is taxable, with the company required to discharge GST under the reverse charge mechanism. For directors who are employees, amounts treated as salaries and subjected to TDS under section 192 are within Schedule III and not taxable, while amounts classified as professional or technical fees and subjected to TDS under section 194J are outside Schedule III and taxable on reverse charge.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Reverse charge on director remuneration: companies must pay GST where directors provide services but are not employees.
Independent directors and other directors who are not employees provide services outside Schedule III and their remuneration is taxable, with the company required to discharge GST under the reverse charge mechanism. For directors who are employees, amounts treated as salaries and subjected to TDS under section 192 are within Schedule III and not taxable, while amounts classified as professional or technical fees and subjected to TDS under section 194J are outside Schedule III and taxable on reverse charge.
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