TaxTMI 
TaxTMI 
Is Urban Co Operative Bank Need to pay GST under RCM for Directors Sitting fees Directors are not full time employees all are selected via election and few nomination the payment made only for attending directors meeting
RCM on Sitting fees for urban CO Op Bank
18 Dec 2025 
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Urban co operative bank sitting fees for non whole time directors are generally taxable under reverse charge, subject to entity status.
The key operative point is that sitting fees paid to non whole time directors are treated as services taxable under the reverse charge mechanism, payable by the recipient when the recipient qualifies as a company or body corporate; whole time directors in an employer employee relationship are excluded. A dispute arises where a co operative entity's status as a body corporate is contested, affecting whether RCM applies to its payment of directors' sitting fees. (AI Summary)
The key operative point is that sitting fees paid to non whole time directors are treated as services taxable under the reverse charge mechanism, payable by the recipient when the recipient qualifies as a company or body corporate; whole time directors in an employer employee relationship are excluded. A dispute arises where a co operative entity's status as a body corporate is contested, affecting whether RCM applies to its payment of directors' sitting fees. (AI Summary)