Applicability of tds and service tax on director sitting fee

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2017 In case of listed company, whether service tax will be applicable where TDS has been deducted on the amount paid to independent director. We are treating the amount paid as director sitting fees.

Sandeep Dharar

Sandeep Dharar (Expert)
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10 January 2017 Director sitting fees is also a king of remuneration paid to Director. So it is liable to TDS. Regarding Service Tax u must confirm once from the director if she/he is charging Service Tax in the invoice charged by her/him.

Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2017 In this case reverse charge is applicable so liability for paying the service tax is on company and the director has not issued any invoice. So in such situation whether we should make the payment of service tax including interest and penalty or what further can be done.

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ND (Expert)
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10 January 2017 You should pay service tax under reverse charge on director's sitting fees along with interest on delay in deposit,if there is any delay.

Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2017 is there any cenvat credit available for the above service for the service reciever.

Sandeep Dharar

Sandeep Dharar (Expert)
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10 January 2017 If the director has not raised any Service Tax in her/his invoice then there is no need to pay it forcefully. Only if Service Tax portion is mentioned in the invoice, then u need to pay it.