Service tax applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2012 Good Morning All,

one of My Client is Corporate,it has three directors,one director working as managing director and sitting whole time and get remuneration of rs 13,80,000 per annul and two other director get remuneration of 8,40,000 each not sitting full time

my query is that service provided by all director. service tax payble by corporate under reverse charges machanisim

RENGARAJ R.K

RENGARAJ R.K (Expert)
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30 August 2012 Managing Director, Whole Time Director, Executive Directors are employees and salaried. Hence there is no service tax for them. Independent directors those are receiving sitting fees, remuneration, commission, bonus etc will be liable to pay service tax but under reverse charge method. So, company has to pay the service tax and claim Cenvat benefit.