## RCM on Services by Director
### Coverage
Services provided by a director to a company or body corporate located in taxable territory attract Reverse Charge Mechanism (RCM). The recipient company/body corporate is liable to pay GST.
### Taxability Matrix - Remuneration to Director
| Scenario | Nature | Taxability |
|---|---|---|
| TDS deducted u/s 192 (salary) | Employer-employee | Not a supply (Schedule III) |
| TDS deducted u/s other than 192 (e.g., 194J - sitting fees) | Services in director capacity | Taxable under RCM |
| Service not rendered in director capacity (e.g., renting property) | Personal/separate transaction | Taxable under FCM by director |
### Key Principle
The nature of the relationship (employee vs independent director vs personal) determines whether GST applies and who pays it. The TDS section under Income Tax acts as a useful indicator of the underlying nature.