Directors remuneration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2013 Dear Sir,
We are 5 directors of a private limited company. We are all taking directors remmuneration on monthly basis. Now I have few queries on the same.
1. Is there any executive or non executive directors. What is the meaning of the same.
2. Do we need to pay service tax against directors remmuneration. Which category of directors need to pay service tax and how much is the service tax.

Ajay Mishra

Ajay Mishra (Expert)
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07 September 2013 Hi

Yes, All director other than Managing Director and whole time director are called executive director unless they have been appointed as executive director.

Non Executive director are those director which do not involve day to day affairs of the company.

The director who received remuneration will be covered under TDS provisions and not under service tax provisions.

Director who is also giving professional service will be covered under service tax.

Ajay Mishra

Ajay Mishra (Expert)
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07 September 2013 To know more on TDS on director remuneration, go to the following link:

https://www.caclubindia.com/articles/tds-on-remuneration-paid-to-directors-13422.asp#.UO-tTuSE2Jw

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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07 September 2013 The executive directors are employers of the company. Usually, they are whole time directors.

Other than executive directors, as a company, you have to pay service tax @12.36% under reverse charge for the sitting fees, commission and other claimable expenses, 100% for service receiver. For TDS, kindly refer the reply by the Expert, Sri Ajay Mishra.