rcm on services by director

[Madhavan iyengar]

A Managing Director of the Company X has rented out his flat to the Company X for a rent of rs. 15000 per month this flat will be used as a guest house/ training centre by Company X

query

a) whether the Company X is required to discharge GST on RCM basis in above case

AI Summary

Reverse Charge on rent of immovable property not triggered when a company leases a director's flat for corporate use.
The query concerns whether GST under the Reverse Charge Mechanism applies where a Managing Director leases his flat to his company for use as a guest house/training centre. Respondents state the payment is for renting immovable property, distinguishable from directorship services, and conclude RCM for directorship is not applicable to the rental arrangement.