SERVICES PROVIDED BY DIRECTOR OF COMPANY TO COMPANY IS UNDER REVERSE CHARGE OR NOT

[GIRISH LOKHANDE]

WE ARE RECEIVING SERVICE OF COMMERCIAL PROPERTY RENTED BY DIRECTOR OF COMPANY. REVERSE CHARGE NOTIFICATION NO. 13/2017 DT. 28-6-17 SL NO. 6 SAYS

(2) Category of Supply of Services :Services by the Director: Services supplied by a director of a company to the said company

(3) Supplier of Service :A director of a company

(4) Recipient of service :A company located in the taxable territory.

I JUST REMOVED BODY CORPORATE WORD FROM ABOVE & FOUND THAT SERVICES BY DIRECTOR IS UNDER REVERSE CHARGE & RECIPIENT OF SERVICE IS COMPANY

NATURE OF SERVICE NOT SHOWN MEANS ANY SERVICE GIVEN BY DIRECTOR TO THE COMPANY WHICH INCLUDES RANT OF COMMERCIAL PROPERTY FOR COMPANY USE

I READ SOME COMUNNICATION THAT RENT IS NEVER UNDER REVERSE CHARGE IT IS ALWAYS IN FORWARD CHARGE & DIRECTOR IS TO PAY TAX IF HIS TURNOVER IS MORE THEN 20 LACS.

IN MY OPENION IF RENTING OF IMMOVABLE PROPERTY BY DIRECTOR, THEN ONLY IT IS UNDER REVERSE CHARGE. IF RENTING ERVICE GIVEN BY ANY OTHER PERSON THEN GST IS PAYABLE IF HE IS ELIGIBLE TO PAY.

EXPERT OPINION IS REQUIRED.

REGARDS

AI Summary

Debate on GST Reverse Charge Mechanism: Is Commercial Property Rent by Company Directors a Service Under RCM? A discussion on whether services provided by a company director, specifically renting commercial property to the company, fall under the reverse charge mechanism (RCM) for GST. The main contention is whether such rent is considered a service under RCM. Some argue that if the director rents in a personal capacity, it is not under RCM, while others suggest paying GST under RCM to avoid litigation. The issue remains unresolved, with concerns about the lack of clear legal guidance and potential tax implications for both the director and the company.