GST ON DIRECTORS REMUNERATION

[SURYAKANT MITHBAVKAR]

If GST is applicable on remuneration paid to Directors by company.

AI Summary

GST Applicability on Director's Remuneration: Salary Exempt, Services Taxable; Depends on Director's Agreement Terms. The discussion revolves around the applicability of Goods and Services Tax (GST) on remuneration paid to company directors. One viewpoint suggests that GST is applicable, while another argues that remuneration considered as salary is exempt from GST, as it falls under the category of salary and requires the issuance of Form 16. In contrast, Form 16A is issued for professional services. The consensus is that if the remuneration is classified as salary, GST does not apply, but if it is for services, GST is applicable. The determination depends on the terms of the director's agreement.