TaxTMI 
TaxTMI 
If GST is applicable on remuneration paid to Directors by company.
GST ON DIRECTORS REMUNERATION
09 Aug 2017 
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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. (AI Summary)
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. (AI Summary)