Remuneration to director attracts GST under RCM

- In LLP we have designated partners and not directors. It is not applicable on the share of profits.

Sir that is applicable to companies and your 's is an LLP and your designated partners are different from directors.

The case about which people are talking wont apply in your case. Also the case was related to remuneration paid to directors and in your case you are paying profit to partners.

You can read more here: https://www.taxontips.com/salary-remuneration-paid-to-directors-also-liable-for-gst-under-reverse-charge-advance-ruling-rajasthan/

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Hi

Share of profit shall never be taxable under GST.

Recently due to an Advance ruling pronouncement, there has been a question on remuneration to directors. However, in my opinion, this advance ruling should be revoked or amended. There have been other advance rulings in favor too.

Dear Sir,

Hope you are doing well !!

It is not applicable on share of LLP profits. 

Dear sir

The ruling u r talking about is for directors of the company

In ur case they are partners of Llp. 
Llp provide share of profit to partners so gst in same is not applicable.

Please rate 5 & provide valuable feedback so that I can improve my answer in future.

Hello,

GST is not applicable to the share of profits in LLP. The ruling mentioned is for the remuneration of directors in case of company and won't be applicable to an LLP.

I hope that this answer satisfies your requirements. 

Regards,

CA Hunny Badlani

HI

Remuneration and profits from firm in the capacity as working partner of the firm is not in the nature of service and therefore not liable for tax under GST.

Hence LLP is not liable to pay GST under RCM on such payments.

Thanks

Damini

We must look at the terms of employment of the directors, whether it is the same in all respect with that of any employee and in such case, there shall not be GST liability. In case of any deviation or in case of independent director GST would be liable in the hands of the company under reverse charge mechanism.

Hello Sir,

GST is not applicable on Partner's Remuneration.

It is a sort of sharing of profit of the firm in its terms of partner's remuneration, therefore, it is not a supply