TaxTMI 
TaxTMI 
XYZ is a Director in PQR Ltd. Chennai (Not on pay roll) as well as ABC, Mumbai (On pay roll) having a common parent company EFG in Japan. The Directors sitting fees including other incidental expenses for attending meetings at PQR, Chennai are paid by EFG in foreign currency but to ABC, Mumbai since XYZ is representing ABC while attending meetings of PQR. Is ABC, Mumbai liable to pay GST on it?
GST on Director's Fees
14 Feb 2020 
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Reverse charge on director sitting fees: recipient may be liable under GST for payments routed through related entities.
Director sitting fees paid through a related entity may be taxable under GST and can fall under the Reverse Charge Mechanism, making the service recipient liable; commentators differ, with some maintaining director services are not taxable when supplied by an individual, while others cite the notification entry treating director sitting fees as chargeable under reverse charge and report recent enforcement activity issuing notices to companies on directors' remuneration. (AI Summary)
Director sitting fees paid through a related entity may be taxable under GST and can fall under the Reverse Charge Mechanism, making the service recipient liable; commentators differ, with some maintaining director services are not taxable when supplied by an individual, while others cite the notification entry treating director sitting fees as chargeable under reverse charge and report recent enforcement activity issuing notices to companies on directors' remuneration. (AI Summary)