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APPLICABILITY OF GST ON DIRECTORS REMUNERATION As per Section 9(3) of the CGST Act , tax shall be paid on reverse charge basis by the recipient of such service. The Central Government vide Central Tax (Rate) Notification No. 13/2017 dated 28 th June 2017 notified few services on which tax has to be paid on reverse charge basis. Under Entry 6 of the said Notification it is mentioned that services supplied by a director of a company or a body corporate to the said company or the body corporate (located in the taxable territory) this will fall under Reverse Charge Mechanism, i.e. the company have to pay tax on the consideration paid to director and is eligible for Input Tax Credit. As per Clause I of Schedule III – Services by an employee to the employer in the course of or in relation to his employment is not be treated as supply of goods / services. Hence, director of a company are not treated as employee of the company. Based on the above provisions the AAR Bengaluru

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COMPANIES FRESH START SCHEME, 2020 (CFSS, 2020) The Ministry of Corporate Affairs vide General Circular No. 12/2020 dated 30/03/2020 has provided an opportunity to defaulting companies to make a fresh start on a clean slateby filing belated documents, statements, returns and forms including ANNUAL FILING FORMS (like AOC-4, MGT-7), DIR-3 KYC, INC-22A (ACTIVE) in the MCA-21 registry irrespective of its due date without any additional fees. THE DETAILS OF THE SCHEME ARE AS UNDER: • The companies which have failed to file Annual Returns and Financial Statement and various other documents, returns and forms filing fees of which are governed U/S 403 of the Actcan now be filed under this scheme at a nominal fees as prescribed under The Companies (Registration and Offices) Rules, 2014. Note: FORM MGT-14 is not covered U/S 403 of the Act and hence this Scheme is not applicable. • Only normal fees will be payable for filing the documents in the MCA 21 Registry. • Inac