Reverse Charge Mechanism: directors' personal services to their company excluded; cinema food treated as restaurant service when independent. Services supplied by a director to the company in a private or personal capacity, such as renting immovable property, are not taxable under the Reverse Charge Mechanism; only services supplied by a person in his capacity as director attract RCM. Supply of food or beverages in a cinema hall is taxable as restaurant service when supplied as part of, or independently of, a service; if ticket and food are bundled as a composite supply, the principal exhibition service's rate applies to the entire bundle.
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 Mechanism: directors' personal services to their company excluded; cinema food treated as restaurant service when independent.
Services supplied by a director to the company in a private or personal capacity, such as renting immovable property, are not taxable under the Reverse Charge Mechanism; only services supplied by a person in his capacity as director attract RCM. Supply of food or beverages in a cinema hall is taxable as restaurant service when supplied as part of, or independently of, a service; if ticket and food are bundled as a composite supply, the principal exhibition service's rate applies to the entire bundle.
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