Page 56 - GSTL_18th June 2020_Vol 37_Part 3

C12 GST LAW TIMES [ Vol. 37
by an employee to the employer in the course of or in relation to his employment
in terms of Schedule III of the CGST Act, 2017.
5.4 It is further clarified that the part of employee Director’s
remuneration which is declared separately other than ‘salaries’ in the Company’s
accounts and subjected to TDS under Section 194J of the IT Act as Fees for
professional or Technical Services shall be treated as consideration for providing
services which are outside the scope of Schedule III of the CGST Act, and is
therefore, taxable. Further, in terms of notification No. 13/2017-Central Tax
(Rate), dated 28-6-2017, the recipient of the said services i.e. the Company, is
liable to discharge the applicable GST on it on reverse charge basis.
6. It is requested that suitable trade notices may be issued to publicize
the contents of this circular.
7. Difficulty, if any, in the implementation of the above instructions
may please be brought to the notice of the Board. Hindi version would follow.
[C.B.I. & C. Circular No. 140/10/2020-GST, dated 10-6-2020]

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GST LAW TIMES  18th June 2020  56