Director remuneration

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2012 I HAVE PAID THE REMUNERATION TO THE DIRECTOR MONTHLY BASIS AMT.RS.50000/- AND ALSO DEDUCTED THE PROVIDENT FUND AND ALSO T.D.S. (PROFESSION) DEDUCTED IN HIS SALARY.COMPANY HAS GIVEN THE SERVICE TO THE DIRECTOR FOR MOTOR CAR,TRAVEL EXPENSES,TELEPHONE AND MOBILE SERVICES USES AND ITS RUNNING EXPENSES. THE PARTY HAS THE INVOICE IN THE NAME OF COMPANY AND DIRECTOR FORRWARD THE INVOICE TO THE ACCOUNT PAYABLE DEPT.AND COMAPNY HAS DIRECT PAYMENT TO THE PARTY.

MY POINT IS THIS WHETHER SERVICE TAX IS APPLICABLE ABOVE ALL ARE EXPENSES OR NOT.

PLS.CLEARIFY.

THANKS IN ADVANCE

@VaibhavJ

@VaibhavJ (Expert)
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31 December 2012 Hi

When payment is made in terms of salary no ST to be charged.

Regular monthly payment to the full time/whole time directors of the company does not attract service tax.

Thanks!!

Arun Gulati

Arun Gulati (Expert)
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31 December 2012 In my view, once the persons who has provided the services to your director has charged the service tax on these expenses and raise the invoice in your company name, then you are liable to pay service tax only on these invoice.

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