Reverse charge on directors

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2013 sir is reverse charge applicable if a managing director of a pvt. ltd. company is paid fixed allowance for business tours and the amount expended by him is less than the bills raised by the director. further whether the same amount will be considered as the income of the director??

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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19 February 2013 If the managing director is whole tile director and not employed any where else then Service tax is not applicale otherwise it is applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2013 yes the director is a wholetime director but is having a proprietory concern!!!!!!sir will the excess amount received will be taxable in the hands of director as other income?

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CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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20 February 2013 He should not activily involved in the proprietory concers otherwise he is not treated as whole time director hence Service tax is applicable.