director commission

[Madhavan iyengar]

A working director ie as a employee receives commission and not salary from a company is this commission paid liable for reverse charge

another case working director ie as a employee, receives salary and commission in this case is rcm applicable on commission paid by company

AI Summary

Debate on GST Applicability: Is Director's Commission Subject to Reverse Charge Mechanism? Key Decision on Role and Agreement. The forum discussion centers on whether the commission received by a director, who is also an employee, is subject to the Goods and Services Tax (GST) under the reverse charge mechanism (RCM). Participants express differing views. Some argue that if the director is considered an employee, payments are not liable under RCM, as per GST laws that exempt employee services. Others contend that if the director acts in a dual capacity, providing services beyond employment, then the commission is taxable under RCM. The consensus is that the determination hinges on the employment agreement and the nature of the director's role.