RCM on Non -executive director Commission

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... RCM on Non -executive director Commission
Query (Issue) Started By: - Ashwin Bhalakiya Dated:- 18-10-2022 Last Reply Date:- 30-10-2022 Goods and Services Tax - GST
Got 2 Replies
GST
My friends company is paying commission to their Non- Executive directors. They provided commission entry in books in FY 2020-21, the same got approved in Board meeting which is held in July-2021 & payment .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... was made to director on 7th Aug 2021. Company Paid GST on RCM on 20th Sept 2021. Now Government GST officer raise the query that the company has paid the GST on RCM in Sept-2021, which is liable for interest for delay payment of GST. We would like to know the legal provision of the act. Whether RCM is to be paid on Provision or on Actual payment basis. Reply By KASTURI SETHI: The Reply: The de .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... partment's objection is legally correct.You need to go through the meaning of 'consideration' as defined under Section 2(31) of CGST Act which is extracted (31) "consideration" in relation to the supply of goods or services or both includes - (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government; Reply By Shilpi Jain: The Reply: Section 13(3) of the CGST Act is the provision to decide when the liability to pay tax arises. In the present case, liability under RCM arises when the payment was made by the Company. In the present case n .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... o delay so no interest. 3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earlier of the following dates, namely:-- (a) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or (b) the date immediately followi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ng sixty days from the date of issue of invoice or any other document, by whatever name called, in lieu there of by the supplier:
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X