Breif Issue :
Facts & Issue Of The Case :
Applicant is registered under Goods and service Act,2017 having the business of providing consultancy services, like surface survey and map making , project management consultancy services for construction projects, Engineering Advisory Services and technical testing analysis services etc. Applicant has sought the advance ruling on the following issues :
- Whether the expenses incurred by the staff members on behalf of the company exceeding Rs. 5000/- a day and then reimbursed periodically are liable to tax.
- Whether RCM is applicable on remuneration paid to directors.
Decision :
Following AAR can be referred in context of decision made in the advance ruling authority, Karnataka in case of "Anil Kumar Agrawal, AAR-Karnataka" and "Clay Craft India Pvt. Ltd, AAR-Rajasthan" as in this case also the 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 goods or supply of services and hence the same is not liable to tax as the transaction of services supplies by the supplier to the employee and paid by the employee is liable to tax after 30.09.2019.
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.
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