https://www.taxtmi.com/article/detailed?id=8497 Whether payments to a director fall outside the Reverse Charge Mechanism turns on whether a genuine employer-employee relationship exists, judged by substance: duties, reporting obligations, authority to hire or remove, remuneration periodicity and records, and trade usages. Directors may be employees as well as agents; oral terms, current-account practices or customary usages can evidence employment. To avoid adverse tax treatment, engagement letters, defined responsibilities, reporting clauses, payroll entries and records of assignment and supervision are practical safeguards. en-us Thu, 09 May 2019 05:48:33 +0530 Thu, 09 May 2019 05:48:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=8497 Whether payments to a director fall outside the Reverse Charge Mechanism turns on whether a genuine employer-employee relationship exists, judged by substance: duties, reporting obligations, authority to hire or remove, remuneration periodicity and records, and trade usages. Directors may be employees as well as agents; oral terms, current-account practices or customary usages can evidence employment. To avoid adverse tax treatment, engagement letters, defined responsibilities, reporting clauses, payroll entries and records of assignment and supervision are practical safeguards. Articles Service Tax Thu, 09 May 2019 05:48:33 +0530 https://www.taxtmi.com/article/detailed?id=8497