Service tax liability on director remuneration

This query is : Resolved 

03 November 2012 Sir,
we have seperate ledger of Director Remuneration in books of accounts, but remuneration paid to director, shows as salary A/c each month , is there any liability arise to pay service Tax under Reverse Mechanism Rule . because till date we have not paid any service tax on such remuneration, paid to director as salary a/c. if it is payable , can we avail credit of service tax paid on director's remuneration as salary a/c.

regds
Vinay Karnik
Ahmedabad

03 November 2012 Remuneration is paid to Director in course of employment. So there is no need to charge and pay service tax.
Service tax is payable on the amount paid to non-executive directors or directors who are not in whole time employment...like sitting fees etc.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries