GST on reimbursements

[Madhavan iyengar]

Company A based in india it has 2 directors 1 director has purchased some services and software from foreign vendor who raised invoice on director

subsequently director presented the bills to company A and got reimbursements

whether these reimbursements paid by Company A to its directors will attract RCM

AI Summary

Debate on GST Applicability for Company A's Director Reimbursements: Employment Status and Reverse Charge Mechanism Key Factors. A discussion forum addressed the applicability of the Goods and Services Tax (GST) on reimbursements made by Company A to its director for services and software purchased from a foreign vendor. Opinions varied, with some experts asserting that the Reverse Charge Mechanism (RCM) applies if the director is not an employee, while others argued that reimbursements do not constitute a taxable supply. The discussion emphasized the importance of determining the director's employment status and the nature of the transaction. Participants appreciated the forum's role in enhancing understanding of GST laws and its implications.