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TMI Blog2020 (9) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... 23-7-2020 - J.P. MEENA AND HEMANT JAIN, MEMBER Present for the applicant : Not Applicable Note : Under Section 100 of the CGST/ RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/ RGST Act, 2017, within a period of 30 days from the date of service of this order. At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST 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 provision under the RGST Act. Further to the earlier, henceforth for the purposes o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at different level of management and each one of them is holding charge of procurement of raw material, production, quality checks, dispatch, accounting etc. In other words, they are also working as an employee of the company for which they are being compensated by the company by way of regular salary and other allowances as per the company policy and as per their employment contract. In fact, these Directors are treated at par with any other employee of the company as far as their employment is concerned. The company is deducting TDS on their salary and PF laws are also applicable to their service. Therefore, in all practical purposes these directors are the employees of the company and are working as such besides being Directors of the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said Table, the whole of central tax leviable under section 9 of the said Central Goods and Services Tax Act, shall be paid on reverse charge basis by the recipient of the such services . 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. 4. Based on the above decision the Authority for Advance Ruling, Jaipur also have given similar decision in the case of M/s. Clay Craft India (P) Ltd. = 2020 (4) TMI 228 - AUTHORITY FOR ADVANCE RULING RAJASTHAN . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n No. 10/2017- Integrated Tax (Rate) dated 28th June 2017. B. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT Whether GST is payable under Reverse Charge Mechanism (RCM) the salary paid to Directors of the company who is paid salary as per employment contract? C. WITHDRAWAL OF APPLICATION On behalf of the applicant Shri Madhu Sudan Sharma, authorized signatory of the applicant, submitted a letter dated 29.06.2020 addressed to this authority requesting to withdraw their application. D. FINDINGS, ANALYSIS CONCLUSION: We observe that Shri Madhu Sudan Sharma, authorized representative of the applicant, submitted a letter dated 29.06.2020 addressed to this authority requesting to withdraw their application. Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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