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.

[Shilpi Jain]

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

No RCM for the professional serivces.

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

If other receipts + prof fees > 20L then liable to register

[Kalpesh Shah]

Thank you for the Reply Shilpi Madam.
 

further Querry on the same point 

Company is Disclosing the Professional Fees under Managerial Remuneration. Then what will be the status of GST ?

[Padmanathan KV]

What is the nature of service rendered by the director?

[Kalpesh Shah]

Dear Sir,

Nature of Services rendered is Professional Services as a Technical Person.

[Padmanathan KV]

In that case, I agree with the views of Shilpi Ma'am. 

[Kalpesh Shah]

Thank you for the Reply 

AI Summary

Reverse charge mechanism not applicable to professional fees paid to whole-time director; supplier must charge GST and registration follows threshold.
Where a whole-time director renders professional services to the company, those services are taxable under the normal charging framework and reverse charge mechanism does not apply; the director as supplier must charge GST. Labeling the payment as managerial remuneration does not change the GST character. Registration is required if the director's aggregate taxable supplies, including the professional fees, exceed the statutory registration threshold, and TDS under income tax does not affect GST liability.