supply to related party

[Kaustubh Karandikar]

Club Membership Fees paid by XYZ Ltd. on behalf of the Director of the company. The director is not on the payroll of the company. Is XYZ required to pay GST on it under the category of ‘Services provided to related party without any consideration’?

AI Summary

XYZ Ltd. Not Liable for GST on Club Fees for Director, No Related Party Service Issue Found. XYZ Ltd. paid club membership fees on behalf of a company director who is not on the company's payroll. The query was whether XYZ Ltd. must pay GST under the category of 'services provided to a related party without any consideration.' The response clarified that XYZ Ltd. is acting on behalf of the director and not as an intermediary, thus the issue of related parties does not apply in this context.