9911796707
TMI Blog2019 (10) TMI 793X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 97 of the CGST Act, 2017 and Section 97 of the KGST Act, 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000-00 each under the CGST Act and the KGST Act. 2. The Applicant is a Private Limited Company and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question: a) Whether the expenses incurred by the Staff members on behalf of the Company exceeding Rs. 5000-00 a day and then reimbursed periodically are liable to tax b) Whether RCM is applicable on remuneration paid to the Directors. 3. The applicant furnishes some facts relevant to the stated activity: a. The applicant states that they are in the business of providing Consultancy services, like s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e also considered the issues involved on which advance ruling is sought by the applicant and relevant facts. At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 4.1 The facts presented by the applicant have been examined and its found that the applicant's employees incur expenses on behalf of the company in the course of employment and the said amounts are reimbursed by the applicant on periodical basis. These expenses are incurred by the applicant and are only paid by the empl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person but shall not include any subsidy given by the Central Government or a State Government; Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply;" 4.4 The amount paid by the employee to the supplier of service is covered under the term "consideration" as if it is paid by the applicant himself for the services received by them on behalf of the company. This amount reimbursed by the applicant to the employee later on would not amount to consideration for the supplies received as the services of the employee to his employer in the course of his employment is not a supply of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 of the said Notification reads as under: SI.No. Category of Supply of Services Supplier of Service Recipient 1 2 3 4 6 Services supplied by a Director of a company or a body corporate to the said company or the body corporate A director of a company or a body corporate The company or a body corporate located in the taxable territory In the present case, the applicant is the company and is located in the taxable territory and the Directors' remuneration is paid for the services supplied by the Director to the applicant company and hence the same is liable to tax under reverse charge basis under section 9(3) of the Central Goods and Services Tax Act, 2017. 6. The conclusions drawn in reference to the Central Goods and Service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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