Sir/Madam,
In a company, director salary paid u/s. 192 of the Income Tax Act - RCM is not applicable.
Other than salary in a company- any amount paid other than loan or advance attracts the RCM liability.
In case of Partnership firm or LLP - Whether Partner remuneration attracts the RCM liability? Please advice
Debate on GST Liability: Is Partner Remuneration in LLPs Subject to Reverse Charge Mechanism? Exploring Tax Law Interpretations. A discussion on a forum revolves around whether partner remuneration in a partnership firm or LLP is subject to Reverse Charge Mechanism (RCM) under GST. One participant argues that partner remuneration is liable to GST since partners are not considered employees. Others counter that RCM does not apply, as partners are owners, not employees, and their remuneration is akin to a share of profits. They suggest that GST should not be applicable as it constitutes self-service. The discussion includes reference to case law and differing opinions on the potential for litigation and the interpretation of related tax laws. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
