TaxTMI 
TaxTMI 
RCM on Sitting fees for urban CO Op Bank
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....CM on Sitting fees for urban CO Op Bank<br> Query (Issue) Started By: - KS Bhat Dated:- 18-12-2025 Last Reply Date:- 20-12-2025 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>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 d....
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....irectors meeting Reply By Sadanand Bulbule: The Reply: Refer CBIC Circular No. 140/10/2020-GST dated 10/06/2020. Since Urban Co-Operatibe Bank is a Body Corporate, sitting fees for services supplied by the directors is laible for GST under RCM. Election or nomiation of a director is immaterial. Reply By Ryan Vaz: The Reply: Applicable Law / Notification / Circular * Se....
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....ction 9(3), CGST Act, 2017 - Government may notify supplies on which tax is payable under RCM. * Notification No. 13/2017 - Central Tax (Rate) dated 28-06-2017, Entry No. 6 Services supplied by a director of a company or body corporate to the said company/body corporate - GST payable by the recipient under RCM. * CBIC Circular No. 140/10/2020-GST dated 10-06-2020 * Clarifies GST under....
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.... RCM applies on directors' remuneration/fees where director is not an employee. * Only salary paid to whole-time directors/employees covered under Schedule III (employer-employee) is outside GST. * Section 2(11), CGST Act - "Body Corporate" includes entities like Co-operative Banks registered under Co-operative Societies Act. Short Practical Answer ? Yes. An Urban Co-operative Bank is r....
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....equired to pay GST under RCM on directors' sitting fees paid to elected or nominated directors who are not full-time employees of the bank. Reply By KASTURI SETHI: The Reply: FAQ dated 7.8.17 Q. No. 16 Whether payment of sitting fees to directors 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....
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..... 13/2017-Central Tax (Rate), dated 28-6-2017. Reply By KS Bhat: The Reply: Sir RCM applicable to body corporate directors sitting fees where as urban Co operative society registered under state co operative act is not considered body corporate as per section 2(11) company act since GST act not defined body corporate Reply By KS Bhat: The Reply: Sir RCM applicable to body c....
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....orporate directors sitting fees where as urban Co operative society registered under state co operative act is not considered body corporate as per section 2(11) company act since GST act not defined body corporate Reply By Sadanand Bulbule: The Reply: Dear all Plz refer Section 2(84) of the CGST Act which defines "person" which includes various entities. GST being an in....
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....direct tax is cross-fertlisation of many statutes. So it has to read together with other related statues to arrive at the intention of the lawmakers. Since many terms are not defined under the GST Act, one need to borrow the meaning assigned to a perticular term under other related satutes. For example, currency is a goods under the Customs Act, whereas it is kept outside the definition of goods u....
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....nder the GST Act. There are many such debatable issues which requires broder understanding to reach the ultimate object. Reply By Shilpi Jain: The Reply: "Body Corporate" has the same meaning as assigned to it in clause (11) of section 2 of the Companies Act, 2013. This is the definition given in the services RCM notification. Under Cos Act, coop society is not a bod....
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....y corporate. So no RCM in this case.<br> Discussion Forum - Knowledge Sharing ....