TaxTMI 
TaxTMI 
TaxTMI 
Partner Remuneration
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....artner Remuneration<br> Query (Issue) Started By: - CABayyaReddy DK Dated:- 14-5-2024 Last Reply Date:- 4-6-2024 Goods and Services Tax - GST<br>Got 9 Replies<br>GST<br>Sir/Madam, In a company, director salary paid u/s. 192 of the Income Tax Act - RCM is not applicable. Other than salary in a company- any amount paid other than loan or advance attracts the RCM liability. In case of Partnership ....
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....firm or LLP - Whether Partner remuneration attracts the RCM liability? Please advice Reply By KASTURI SETHI: The Reply: Extract of FAQs Q. Whether remuneration to partners by partnership firm is liable to GST? A. Yes, remuneration payable to partners is exgible to GST in view of the fact that partners are not employees of partnership firm. Reply By KASTURI SETHI: The Reply: Sh BayyaReddy D....
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....K Ji, Here is a case law in favour of the assessee. Although it pertains to pre-GST era yet it can be useful to the assessee. 2022 (5) TMI 800 - GUJARAT HIGH COURT - PR. COMMR. OF CENTRAL TAX & SERVICE TAX Versus CADILA HEALTHCARE LTD. Reply By CABayyaReddy DK: The Reply: Sir, Can it be argued that Partners are not employees of the company, but owners of the company and they have taken the s....
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....hare of profit as remuneration which is otherwise is share of profit credited to partner account as per their sharing ratio. Pls advice Reply By Yash Shah: The Reply: The RCM Entry specifically mentions about the liability to be paid in case of Director of a company or a body corporate and no one else, and also the recipient of such services is such Body corporate or company. In the current ca....
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....se, Partner is receiving the remuneration from his firm or LLP in terms of agreement and hence RCM is not applicable. Also it could be considered as self services, as the benefits arising out of such partnership is to them only. According to me, GST is not applicable. You may refer to below discussion as well on same lines - https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=....
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....115497 Reply By KASTURI SETHI: The Reply: Sh. D.K. BayyaReddy Ji, The issue is not litigation-free. The possibility of SCN cannot be ruled out. At the same time, I am of the opinion that the issue can be well contested on the following grounds :- (i) GST cannot be charged twice since remuneration to the partner has been paid out of tax-paid (presumed) turnover of the partnership firm. (ii) ....
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....Remuneration paid to the partner is on account of self-service as explained in detail at serial no. 4. Self-service is no service. Case laws can be easily traced out. (iii) Also peruse the definition of 'Remuneration' in the Company Act and legal meaning of 'remuneration'. These will also be helpful in contesting the issue. Reply By Shilpi Jain: The Reply: Partners remuneration....
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.... not liable to gst. It is like a share in the firm. Reply By Shilpi Jain: The Reply: And 100% no rcm liability as there is no such entry in the rcm notification Reply By KASTURI SETHI: The Reply: Regarding non-applicability of RCM, I agree with the views of Sh.Yash Shah and Madam Shilpi Jain. Other aspects have to be taken care of. Reply By Padmanathan Kollengode: The Reply: I agree with ....
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....Yash ji. No RCM on remuneration to partners.<br> Discussion Forum - Knowledge Sharing ....