GST ON DIRECTORS REMUNERATION

[SURYAKANT MITHBAVKAR]

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

[Himansu Sekhar]

Yes, the gstvis applicable

[KIRTIKUMAR PUROHIT]

ON DIRECTORS REMUNERATION THERE IS NO GST APPLICABLE BECAUSE IT IS CONSIDERED AS SALARY AND 16-A FORM ALSO IS TO BE ISSUED, Any other services provide in that case GST applicable.

[Himansu Sekhar]

Sir, form 16 & 16A are issued to different personas. 16A is issued for professional services.

I may be corrected if wrong.

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

Even we can issue both the form to same person. In case of salary or remuneration form 16 will be issued in any other case form 16A will be issued to the directors.

[Himansu Sekhar]

If it is a salary , there will be no gst, otherwise there will be gst. Check under which act TDs is deducted, 194 or 192

[KASTURI SETHI]

Remuneration is wider term. Salary is one of the components. Salary is not taxable under GST.. Whether Director is getting salary or remuneration it can be ascertained from the terms and conditions of the agreement. Normally there is agreement and not appointment letter between Company and Director.

[KASTURI SETHI]

Salary is already part of transaction cost.

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.