Applicability of GST RCM on Professional Fees paid to Wholetime Director

[Kalpesh Shah]

Respected Experts and Seniors,

My Querry :

Whole time Director of a Pvt Ltd Company taking Professional fees from the Company.

Company Deducts TDS U/s. 194J of Income Tax Act.

Wholetime Director is also Registered Under GST Act.

Kindly Suggest

1. Whether GST is applicable on RCM basis to company or Forward Charge basis ?

2. Whether director is required to be registered under GST, if his other receipts (other than Above Professional Fees) is below Rs. 20 lakhs ?

Thanking you in Advance.

AI Summary

GST on Director's Fees: No Reverse Charge for Professional Services; Registration Needed if Receipts Exceed Rs. 20 Lakhs A discussion on the applicability of GST on professional fees paid to a whole-time director of a private company. The company deducts TDS under Section 194J of the Income Tax Act, and the director is registered under GST. The main queries are whether GST should be applied on a reverse charge mechanism (RCM) or forward charge basis, and if the director needs GST registration if other receipts are below Rs. 20 lakhs. Responses indicate no RCM for professional services and registration is required if total receipts exceed Rs. 20 lakhs. Further clarification sought on GST status when fees are disclosed as managerial remuneration.