Reverse charge

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2013 Whether a company is liable to deposit service tax under reverse charge If it pay salary to his directors.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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09 January 2013 yes the company is liable to pay service tax on the directors remuneration paid by the company to its directors.
without any abatement

Sanjay Singhal

Sanjay Singhal (Expert)
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09 January 2013 Salary paid to working directors, that is, full-time directors under the contractual terms is not covered under the service tax levy.

However, salary paid to non-executive directors or independant directors, who are not in full-time employment of the company would fall under the service tax net.

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