Service tax

This query is : Resolved

Srirang Mahabhagwat (Querist)
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18 August 2012 Dear Members,

A Private Limited Company has a Managing Director. Is the Company/ Managing Director required to pay Service Tax on the remuneration payed to the Managing Director.

Thanks & Regards,

Srirang

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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18 August 2012 Dear Friend,Services provided by the employee to its employer is mentioned in Negative List of Service Tax and hence not chargeable. Since Managing Director is whole time employee of the company thus the services provided by the Managing Director to the company is not taxable.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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18 August 2012 Agree with Deepakji..
Service provided by employee to employer during the course of employement is covered under negative list.

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Srirang Mahabhagwat

Srirang Mahabhagwat (Querist)
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18 August 2012 Thanks Deepak ji and Amit Ji.

Regards,

Srirang

Guest

Guest (Expert)

18 August 2012 Service provided by employer to employee is not covered under negative list. Rather The definition of service itself excludes services provided by the employees to employers.

Whole time directors and Managing Directors of the companies are considered as employees of the company in which they are directors. Hence, there is no service tax in respect of such employee directors. Service tax will apply only in case of non employee directors.

Srirang Mahabhagwat

Srirang Mahabhagwat (Querist)
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22 August 2012 Thanks Neha Madam.

Regards,

Srirang