{"id":25207,"date":"2023-08-02T13:49:07","date_gmt":"2023-08-02T08:19:07","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=25207"},"modified":"2023-08-02T13:55:22","modified_gmt":"2023-08-02T08:25:22","slug":"director-personnel-services","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/director-personnel-services\/","title":{"rendered":"Director Personnel Services not covered under RCM Mechanism"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-25209\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/08\/Director-Personnel-Services-are-not-covered-under-RCM-Mechanism.-.jpg\" alt=\"Director Personnel Services are not covered under RCM Mechanism.\" width=\"1058\" height=\"529\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/08\/Director-Personnel-Services-are-not-covered-under-RCM-Mechanism.-.jpg 1058w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/08\/Director-Personnel-Services-are-not-covered-under-RCM-Mechanism.--300x150.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/08\/Director-Personnel-Services-are-not-covered-under-RCM-Mechanism.--1024x512.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/08\/Director-Personnel-Services-are-not-covered-under-RCM-Mechanism.--768x384.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/08\/Director-Personnel-Services-are-not-covered-under-RCM-Mechanism.--800x400.jpg 800w\" sizes=\"auto, (max-width: 1058px) 100vw, 1058px\" \/><\/h2>\n<h2><span style=\"color: #000080;\">Director Personnel Services are not covered under RCM Mechanism<\/span><\/h2>\n<p>Services by directors in personal capacity to company not taxable under GST Reverse Charge Mechanism: Finance Ministry<\/p>\n<ul>\n<li>The Central Board of Indirect Taxes &amp; Customs on 01 Aug. 2023 make an announcement subject to the recommendation of GSTN; Central Board of Indirect Taxes &amp; Customs issue Circular No 201\/2023: Director Personal Services are not covered under RCM \u00a0(Reverse Charge Mechanism) Scheme<\/li>\n<li>Central Board of Indirect Taxes &amp; Customs leave the Director personal services under Reverse Charge Mechanism (RCM), That supply by a director to the company in his private or personal capacity. E.g. Renting property to the company.<\/li>\n<li>As per the CBIC Notification No. 13\/2017-CTR (SI.No.6) Date 28 June 2017. Which explain that on services that\u2019s are comes out, services which Director provided in his Directorial capacity, shall be charge under RCM in the hands of the company.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-25212\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/08\/Director-Services-Under-RCM-1-1.jpeg\" alt=\"Director Services Under RCM\" width=\"655\" height=\"927\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/08\/Director-Services-Under-RCM-1-1.jpeg 655w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/08\/Director-Services-Under-RCM-1-1-212x300.jpeg 212w\" sizes=\"auto, (max-width: 655px) 100vw, 655px\" \/><\/p>\n<ul>\n<li>Clarification came after the goods and services tax council in its meeting on July 11 decided that GST will be imposed only on services which are provided by director in their official capacity to the company. But according to experts, there are still a lot of uncertain areas. Swatantra Kumar Singh, partner at Rajput Jain and Associates, criticised the clarification as being too limiting and failing to define the term &#8220;personal capacity&#8221; or &#8220;indicate an illustrative list of personal services provided by a director.&#8221;<\/li>\n<li>\u201cGST Taxation implication of other director services for example consultancy or advisory services, training services and planning services, &amp; bank guarantee Services will continue to be a grey area for the industry unless Central Board of Indirect Taxes &amp; Customs gives unambiguous rules for categorization of &#8216;director services&#8217;,<\/li>\n<li>Before commencing this new amendment \u201cDirectors services even private or personal capacity, both are shall taxable under RCM in the hand of company\u201d. Its noted as an important change in Central Goods and Services Tax Act U\/s 9(3) of Reverse Charge Mechanism.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Director Personnel Services are not covered under RCM Mechanism Services by directors in personal capacity to company not taxable under GST Reverse Charge Mechanism: Finance Ministry The Central Board of Indirect Taxes &amp; Customs on 01 Aug. 2023 make an announcement subject to the recommendation of GSTN; Central Board of Indirect Taxes &amp; Customs issue &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10009],"tags":[1839,503,2653],"class_list":["post-25207","post","type-post","status-publish","format-standard","hentry","category-gst-filling","tag-rcm","tag-reverse-charge-mechanism","tag-reverse-charge-mechanism-rcm"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All 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