educational expense to CEO to pay RCM this amount for this issue or not

[K KARTHIK]

Sir, in PVT LTD company,it has three Directors, one of the director daughter as chief executive of this company, she studied Management course in UK, for her studies her company sponsored takeover all the expenses from the company itself, for this expenses they showed in their Book of accounts as educational expense to CEO, for this subject - notice came from GST and asked to pay RCM to ensure the tax payment, amount is Rs.33 lakhs, now We have to pay RCM this amount for this issue or not, please guide me sir.

AI Summary

Company Pays GST on CEO's UK Management Course Under Reverse Charge Mechanism for Imported Educational Services A private limited company paid educational expenses for its CEO's management course in the UK. The GST department issued a notice demanding Reverse Charge Mechanism (RCM) payment of Rs. 33 lakhs. Based on legal analysis, the company likely must pay GST under RCM for imported educational services, as the expense is considered an import of service. The company should self-invoice and potentially explore input tax credit options, while maintaining detailed documentation to support its tax position.