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

Reverse charge applicability: commission to a director is taxable when supplied in non-employee capacity under GST.
Whether commission paid to a director is subject to reverse charge depends on the director's capacity: services by an employee to the employer are excluded under Schedule III and not treated as a taxable supply, so commission within an employment relationship is not subject to RCM; where the director supplies services in a non-employee capacity, reverse charge notifications render the company liable and contractual terms proving the employment relationship are decisive.