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 on directors' remuneration depends on whether payments constitute salary or taxable professional services for companies. GST incidence on payments to directors depends on characterization: salary payments, reported under Form 16 and subject to salary tax provisions, are not subject to GST; payments characterized as professional or service fees, reported under Form 16A and subject to withholding under contractor/professional provisions, are subject to GST. The contractual terms governing the director's engagement control this classification because remuneration may include non-salary service components that attract GST.