Advocate Praveen Kr Pandit asked 5 years ago
RCM on Director remuneration charges in Pvt. Ltd.
RCM on Director remuneration charges in Pvt. Ltd.
As we know in Pvt. ltd company generally business owners hold the post of Director. my question whether RCM is applicable to said Director’s Remuneration and if applicable what is the rate of GST and can we take ITC.
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1 Answers
Kiran kumar kurakula answered 5 years ago
As per Press release on by CBIC on 15th Nov 2019,
As stated in press release, Payment made to Directors/Employees do not attract GST.As per Sec 7(2) read with schedule III of the CGST act 2017, Salaries services by employee to employer shall be neither treated as supply of goods not as a supply of service. So Salary as such cannot be subject to GST.
