One of my client who is a Govt Company with no revenue holding GSTIN as deductor as on date is paying Director Sitting Fees to Independent Director wherein TDS is Deducted u/s 194J.
My query is in regard to applicability of RCM on such Director Sitting fees paid by the Company?If your answer to above query is yes, shall the company obtain GST Registration just for the purpose of discharging GST Liability?
Thanks in Advance
Government Company Must Register for GST to Pay Director Fees Under RCM, Section 194J TDS Deduction Applies A government company with no revenue, holding a GSTIN as a deductor, is paying director sitting fees to an independent director, with TDS deducted under section 194J. The query concerns the applicability of Reverse Charge Mechanism (RCM) on these fees and whether the company should obtain GST registration solely to discharge GST liability. Responses confirm that RCM applies, requiring the company to pay GST on the fees and obtain GST registration for this purpose. Additionally, a question was raised about why the company lacks regular GST registration. (AI Summary)
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