Circular 140- Clarification on RCM on director Remuneration
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tax_expert
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Goods and Services Tax (GST)
Synopsis of Circular 140 Dated 10/06/2020
Doubts have been raised as to whether remuneration paid by company to director falls under entry in Schedule III “Services by an employee to employer in course or in relation to employee” or whether the same is liable to taxed under RCM in terms of NN 13/2017 dated 28.06.2017
Nature of Payment | RCMYES or NOT |
Remuneration paid to Independent director or director who are not employees of company | YES |
Remuneration paid to director who are employees of company and TDS is deducted u/s 192 (TDS on Salary) of Income Tax Act | NO |
Remuneration paid to director who are employees of company and TDS is deducted u/s 194J (TDS on Professional or Technical Services) of Income Tax Act | YES |
