After the contradictory two advance rulings given in Karnataka and Rajasthan on director’s remuneration, a lot of doubts have been created in the minds of the authorities at all field levels. Subsequently, GST Authorities have started issuing notices to the companies seeking information about the remuneration of directors and the tax paid on them. The AAR Rajasthan said director remuneration is under the ambit of GST, while the AAR Karnataka ruled it was not.
