Reverse mechanism

This query is : Resolved

JAYAKRISHNAN.K (Querist)
Follow

30 May 2013 I want clarification regarding the sitting fees to Whole time Director's is applicable or not for Reverse charge Mechanism.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
Follow

30 May 2013 Whole time director being an employee there is no reverse tax applicable to his remuneration or sitting fees.

Message likes : 1 times

JAYAKRISHNAN.K

JAYAKRISHNAN.K (Querist)
Follow

30 May 2013 Sir, I need a notification regarding aboves.

If not a whole time directors it is applicable reverse tax under which category to filed the service tax ST3 return.

Upgrade to CAclubindia Pro. Subscribe Now!

Jayant Bothra

Jayant Bothra (Expert)
Follow

30 May 2013 Dear Jayakrishnan,

You need to see Sec 65B(44). Sec 65B (44) contains the definition of service. The definition of service excludes the service provided by employee to the employer and whole time directors, managing directors or executive directors are usually under the employment of the company. Therefore, no service tax if amount paid to them. However, if you pay the amount to other's who are not in the employment of co. then you need to pay the service tax.

There is no notification for the same. You need to refer sec 65B(44) only for interpreting the same.

What Madhukar ji saying is 100% correct.

Thanks & Regds
CA JAYANT BOTHRA
Email: ca.jayantbothra@gmail.com
Blog: cajayantbothra.blogspot.in

JAYAKRISHNAN.K

JAYAKRISHNAN.K (Querist)
Follow

31 May 2013 ok thanx.

we pay the sitting fees to other's (director) under which head to remit.