Services supplied by a director of a company or a body corporate to the said company

[RameshBabu Kari]

How to find the rate for the notification number 13/2017 – Central Tax(rate), in this notification there is only RCM is discussed and no rate was shown. In this notification, Serial No 6, about Services supplied by a director of a company or a body corporate to the said company or the body corporate. Remuneration to director of the company will attract GST ?

what provisions will attract under gst ?

[Rajagopalan Ranganathan]

Sir,

Services supplied by a director of a company or a body corporate to the said company or the body corporate is classifiable under SAC 9983 (ii) attracting CGST @9% and SGST @ 9%. If the supply is inter state IGST @ 18% is payable under reverse charge vide Sl. No. 6 of the notification mentioned by you.

[KASTURI SETHI]

I support the views of Sh.Ranganathan, Sir. Complete HSN. Is 998311.

[RameshBabu Kari]

Dear Experts,

What kind of services can be taxed under gst ? and does remuneration received by the director and facilities availed such as like car, home and other attract gst ?

[Himansu Sekhar]

Remunerations

[KASTURI SETHI]

Yes. Remuneration is also consideration. It is fitted in the definition of consideration.

[Vamsi Krishna]

If a company pays salary to MD, Executive Director & Whole time director, can that be considered as Remuneration ?

If GST applicable in the case??

[Himansu Sekhar]

No it is a salary. There is a difference of TDs between sec 192 and 194 of it act.

AI Summary

GST treatment for services by company directors: reverse charge applies under notified classification; remuneration treated as consideration. Services supplied by a director to the company are taxable under GST and, under Sl. No. 6 of Notification 13/2017, attract tax on the recipient under the reverse charge mechanism; such services are classifiable under SAC 9983 (noted as 998311) and remuneration is treated as consideration, whereas genuine salary payments are treated as payroll and distinguished from taxable supply.