Clay Crafts India Pvt. Ltd ., In re

Date: July 2, 2020

Court: Appellate Authority for Advance Ruling
Bench: Rajasthan
Type: Advance Ruling
Judge(s)/Member(s): Pramod Kumar Singh, Preetam Yashvant
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Subject Matter

Consideration paid to the Directors of a company will attract GST under reverse charge mechanism. AAR ruling upheld

Reverse Charge Mechanism

Summary

Remuneration, if any, paid by the appellant to the independent directors or those directors who are not the employee of the appellant is taxable in hands of the appellant, on reverse charge basis. Further, the part of Director’s remuneration wh…

At the outset, we would like to make it clear that the provisions of both the Central GST Act, 2017 and the Rajasthan GST Act, 2017 are same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central GST Act, 2017 would also mean a reference to the same provisions under Rajasthan GST Act, 2017. 2. The present appeal has…

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