Directors remunaration & s.tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2012 Dear Experts,

Should we deduct S.Tax on payments made to my MD on monthly basic of Rs 1.5 lacs

Currently we haven't registered for S.TX then what is the course of acction then...

Regards

CA Suresh Jain

CA Suresh Jain (Expert)
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23 August 2012 No service tax is payable on the payment made to Directors where employee employer relationship exists

RENGARAJ R.K

RENGARAJ R.K (Expert)
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10 September 2012 It seems yours is a company and therefore the following reverse charge is applicable from 01.07.12.

1) Advocate fees(even if it is Rs.5000?)
2) Goods transport agencies
3) Security guard (man power).
4) Rent a cab service......and so on

As such, have you not taken service tax RC so far? As already indicated by the expert, payment to whole time directors/MD/Executive directors where employer -employee relationship exists there is no service tax.

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