Remunaration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2013 Dear Sir,

We are paying remunaration to two Directors a sum of Rs.57000/-Permonth both are 60 years.

The company has to pay the service tax on paymnet of remunaration to the directors

Please advise.

Thanking You,

CA Hardik Bunha

CA Hardik Bunha (Expert)
Follow

12 December 2013 no service tax payable on remuneration

Message likes : 1 times

Ajay Mishra

Ajay Mishra (Expert)
Follow

12 December 2013 Service tax will not be paid on remuneration.

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

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

12 December 2013 Service tax is payable on services provided by non-executive, nominee and independent directors to the company w.e.f. 1-7-2012. Service tax is not payable in case of Managing Director or wholetime director or executive director, if the director is in full time employment of the company.
.
.
Section 65B(44) of Finance Act, 1994 as introduced w.e.f. 1-7-2012 reads as follows – “Service” means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include— (a) – - (b) a provision of service by an employee to the employer in the course of or in relation to his employment (c) – - .

Thus, services provided by employee to employer have been excluded from the definition of ‘service’ itself.