Applicability of service tax on director's remuneration

This query is : Resolved

SUBHASH CHAND (Querist)
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10 March 2015 Dear Sir / Madam,

We are paying Remuneration to whole time director at fixed rate e.g. Rs.1,00,000/- per month and deducting TDS @ 10% under section 94J.

Now i have quarry that Service tax applicable on such payments?

Nilesh

Nilesh (Expert)
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10 March 2015 Company is liable to pay service tax under RCM on payments to directors - non executive (non employee)

If you are deducting TDS under section 194J means you are not treating them as an employee and hence service tax would be applicable.

Thnx

SUBHASH CHAND

SUBHASH CHAND (Querist)
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10 March 2015 Nilesh ji,

The Directors are whole time Director of the Company. It is clearly mention in the notification that Service tax is not payable payment to whole time director.

Kindly check and revert.

Thanking you.

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Nilesh

Nilesh (Expert)
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10 March 2015 My friend I do not find such distinction
I am still on my stand if he is treated as an employee of the company then only service tax is not liable

Please confirm your facts since Whole time director is an employee of the company then how you are deducting TDS under section 194J