TaxTMI 
TaxTMI 
GST on Director s Fees
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....ST on Director s Fees<br> Query (Issue) Started By: - Kaustubh Karandikar Dated:- 14-2-2020 Last Reply Date:- 2-6-2020 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>XYZ is a Director in PQR Ltd. Chennai (Not on pay roll) as well as ABC, Mumbai (On pay roll) having a common parent company EFG in Japan. The Directors sitting fees including other incidental expenses for attending meetings a....
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....t PQR, Chennai are paid by EFG in foreign currency but to ABC, Mumbai since XYZ is representing ABC while attending meetings of PQR. Is ABC, Mumbai liable to pay GST on it? Reply By Ganeshan Kalyani: The Reply: In my view, it is important to see the supplier of service and the receiver. PQR is the receiver in this example and accordingly it is liable to pay tax under RCM. Reply By sarojni sing....
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....h: The Reply: We note that the provision of director services is not itself a taxable activity for GST purposes. This means that a professional director who personally provides director services should not be subject to GST on any fees received, no matter how many directorships the person accepts. Reply By KASTURI SETHI: The Reply: Relevant FAQ (16) Whether payment of sitting fees to dire....
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....ctors covered in the provisions of reverse charge under director services. Reply : Yes, it is covered. Please see S. No. 6 of Table to Notification No. 13/2017-Central Tax (Rate), dated 28-6-2017. Reply By YAGAY andSUN: The Reply: The Directors Sitting fees is liable to be taxed under the provisions of GST Laws. Recently the GST Department is in the process of issuance of notices to the c....
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....ompanies on Directors' remuneration despite of having AARs.<br> Discussion Forum - Knowledge Sharing ....