Last updated at Dec. 16, 2024 by Teachoo
Question 1
Suppose director Mukesh Ambani takes 100 lacs as Salary from Reliance Ltd and 50 lacs as Commission
Is RCM Applicable
Will Mr. Ambani have to take GST No?
RCM applicable on Consultancy Charges of 50 lacs @ 18%=900000
This will be deposited by Company directly
No GST No required in this case
Section 9(3) Reverse Charge on Director Legal Service Provided by Director of a Company to the Company located in Taxable Territory is covered in Reverse Charge Director Note 1)Normally it is applicable on Consultancy Charges, Professional Charges, Commission etc. 2)Charged by Director, rate applicable is 18% However as per Recent Decision of GST Advance Ruling, it is also applicable on Salary Any Service Company located in India Deposits GST teachoo.com
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About the Author
CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.