In a recent advance ruling in the matter of M/s Craft India Private Limited, the Authority of Advance Ruling, Rajasthan (“AAR”) [Advance Ruling No. RAJ/ AAR/ 2019-20/ 33] held that the Good and Service Tax [“GST”] shall be chargeable under the reverse charge mechanism, on the consideration paid or payable to the directors. This ruling of the AAR has created much ambiguity within the corporates and the directors of the companies, as to whether the consideration paid or payable to the directors would attract GST or not.
Please click here for understanding the levy of GST on the consideration paid or payable to the directors for their services.
Source: Contribution by Srinivas Kotni, Managing Partner, Lexport | [email protected] | +91-9811282863 | www.lexport.in
